Investment Ministry Pushes Coal Downstreaming as Export Appeal Declines
Jakarta, CNBC Indonesia — The Ministry of Investment and Downstreaming/BKPM continues to push for accelerated downstreaming in the coal sector, as the appeal of exporting the commodity diminishes.
Deputy Minister of Investment and Downstreaming/BKPM Todotua Pasaribu revealed that the current trend in coal exports is no longer economically attractive for business operators.
"This means we export our coal, and then we simply sell it at the coal price — for business operators, this trend is no longer particularly attractive," he told CNBC Indonesia, as quoted on Monday (14 July 2025).
The government is therefore pushing to accelerate coal downstreaming programmes, one of which involves the gasification of coal into Dimethyl Ether (DME).
According to Todotua, DME holds significant potential to reduce Indonesia's dependence on LPG imports, which have long burdened state finances.
In addition to DME, the government is also preparing the development of other projects such as coal-to-synthetic natural gas (syngas).
"There are two state-owned enterprises currently focused on this area, and the Ministry of Investment is also endorsing and supporting them. The SOE is Bukit Asam — they hold the largest national coal reserves," he said.
Deputy Minister of Investment and Downstreaming/BKPM Todotua Pasaribu revealed that the current trend in coal exports is no longer economically attractive for business operators.
"This means we export our coal, and then we simply sell it at the coal price — for business operators, this trend is no longer particularly attractive," he told CNBC Indonesia, as quoted on Monday (14 July 2025).
The government is therefore pushing to accelerate coal downstreaming programmes, one of which involves the gasification of coal into Dimethyl Ether (DME).
According to Todotua, DME holds significant potential to reduce Indonesia's dependence on LPG imports, which have long burdened state finances.
In addition to DME, the government is also preparing the development of other projects such as coal-to-synthetic natural gas (syngas).
"There are two state-owned enterprises currently focused on this area, and the Ministry of Investment is also endorsing and supporting them. The SOE is Bukit Asam — they hold the largest national coal reserves," he said.