Investment Ministry Pushes Bukit Asam and PGN to Join Coal Downstreaming Projects
Jakarta, CNBC Indonesia — The Ministry of Investment and Downstreaming/BKPM is pushing two major state-owned enterprises, namely PT Bukit Asam Tbk (PTBA) and PT Perusahaan Gas Negara Tbk (PGN), to participate in coal downstreaming projects.
Deputy Minister of Investment and Downstreaming/BKPM Todotua Pasaribu said PTBA and PGN are being encouraged to develop domestic coal downstreaming projects. PTBA is being pushed to work on dimethyl ether (DME) projects as a substitute for Liquefied Petroleum Gas (LPG), as well as coal-to-synthetic-natural-gas projects. He noted that PTBA was selected because it holds substantial coal reserves, whilst PGN's role lies in gas distribution and commercialisation.
"We have already structured these two SOEs to enter what is called coal-to-synthetic-natural-gas downstreaming. Once it becomes a synthetic natural gas product, it can be utilised and commercialised for sale to the market — whether for the electricity industry or as feedstock for petrochemical products," he explained at the Mining Zone Special Dialogue event hosted by CNBC Indonesia, as quoted on Monday (14 July 2025).
He explained that syngas could eventually yield products to replace petrochemical feedstocks that currently remain heavily dependent on imports. There are at least two petrochemical feedstock products that can be derived from syngas: ammonia and methanol.
"The first is ammonia, and the second is methanol. These two petrochemical products, according to our records, still account for significant import figures. And these two products are derived from gas extraction," he said.
Furthermore, he revealed that these projects are no longer at the conceptual stage but have already entered the commercialisation preparation phase.
"We have brought this in — the investment, the technology, and the supporting financing are all in place to manage this. It is currently in the preparation stage, and some have even reached proof of concept ready for commercial execution," he said.
Deputy Minister of Investment and Downstreaming/BKPM Todotua Pasaribu said PTBA and PGN are being encouraged to develop domestic coal downstreaming projects. PTBA is being pushed to work on dimethyl ether (DME) projects as a substitute for Liquefied Petroleum Gas (LPG), as well as coal-to-synthetic-natural-gas projects. He noted that PTBA was selected because it holds substantial coal reserves, whilst PGN's role lies in gas distribution and commercialisation.
"We have already structured these two SOEs to enter what is called coal-to-synthetic-natural-gas downstreaming. Once it becomes a synthetic natural gas product, it can be utilised and commercialised for sale to the market — whether for the electricity industry or as feedstock for petrochemical products," he explained at the Mining Zone Special Dialogue event hosted by CNBC Indonesia, as quoted on Monday (14 July 2025).
He explained that syngas could eventually yield products to replace petrochemical feedstocks that currently remain heavily dependent on imports. There are at least two petrochemical feedstock products that can be derived from syngas: ammonia and methanol.
"The first is ammonia, and the second is methanol. These two petrochemical products, according to our records, still account for significant import figures. And these two products are derived from gas extraction," he said.
Furthermore, he revealed that these projects are no longer at the conceptual stage but have already entered the commercialisation preparation phase.
"We have brought this in — the investment, the technology, and the supporting financing are all in place to manage this. It is currently in the preparation stage, and some have even reached proof of concept ready for commercial execution," he said.