Investment Ministry Receives Strong Interest in Coal Downstreaming Sector
TEMPO.CO, Jakarta - The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has stated it has received considerable investment interest in the coal downstreaming sector, with proposals for alternative technologies in processing the commodity.
"There has indeed been quite a lot of interest coming in, and we have tried to absorb their aspirations. There are several technologies being proposed through PT Bukit Asam Tbk. and PT Perusahaan Gas Negara Tbk. (PGN) in promoting alternative technologies for processing coal," said Rizwan Aryadi Ramdhan, Director of Mineral and Coal Downstreaming at the Ministry of Investment and Downstreaming/BKPM, in Jakarta on Wednesday.
According to him, several other companies have also submitted proposals for coal downstreaming derivatives. Rizwan said the Ministry of Investment is currently conducting an inventory of investment interest, and it is hoped that incoming investments will enrich the coal downstreaming roadmap.
Under the 2023-2040 coal downstreaming roadmap, the target is to fully substitute certain liquefied petroleum gas (LPG) with Dimethyl Ether (DME), as well as to meet domestic coke and semi-coke requirements. The targeted coal downstreaming products are DME, methanol, and coke/semi-coke.
Additionally, the government has set the coal reference price (HBA) for the first period of July 2025 at US$107.35 (Rp 1.74 million) per tonne, an increase of US$8.74 (Rp 141,700) or 8.86 per cent per tonne compared to the second period HBA for June 2025 of US$98.61 (Rp 1.59 million) per tonne. The HBA is regulated under Energy and Mineral Resources Ministerial Decree No. 72 of 2025 on Guidelines for Setting Benchmark Prices for the Sale of Metal Mineral and Coal Commodities.
The Ministry of Investment has recorded the investment potential for the commodity at US$31.82 billion or Rp 518 trillion (at an exchange rate of Rp 16,294 per US dollar), with labour absorption of 23,160 workers, a contribution to Gross Domestic Product (GDP) of US$2.26 billion or Rp 36 trillion, and an export increase of US$11.3 billion or Rp 184 trillion.
Furthermore, Rizwan said the ministry is targeting to attract investment in downstreaming of up to Rp 521.4 trillion this year, covering 15 priority commodities based on the 2025-2029 National Medium-Term Development Plan (RPJMN).
"There has indeed been quite a lot of interest coming in, and we have tried to absorb their aspirations. There are several technologies being proposed through PT Bukit Asam Tbk. and PT Perusahaan Gas Negara Tbk. (PGN) in promoting alternative technologies for processing coal," said Rizwan Aryadi Ramdhan, Director of Mineral and Coal Downstreaming at the Ministry of Investment and Downstreaming/BKPM, in Jakarta on Wednesday.
According to him, several other companies have also submitted proposals for coal downstreaming derivatives. Rizwan said the Ministry of Investment is currently conducting an inventory of investment interest, and it is hoped that incoming investments will enrich the coal downstreaming roadmap.
Under the 2023-2040 coal downstreaming roadmap, the target is to fully substitute certain liquefied petroleum gas (LPG) with Dimethyl Ether (DME), as well as to meet domestic coke and semi-coke requirements. The targeted coal downstreaming products are DME, methanol, and coke/semi-coke.
Additionally, the government has set the coal reference price (HBA) for the first period of July 2025 at US$107.35 (Rp 1.74 million) per tonne, an increase of US$8.74 (Rp 141,700) or 8.86 per cent per tonne compared to the second period HBA for June 2025 of US$98.61 (Rp 1.59 million) per tonne. The HBA is regulated under Energy and Mineral Resources Ministerial Decree No. 72 of 2025 on Guidelines for Setting Benchmark Prices for the Sale of Metal Mineral and Coal Commodities.
The Ministry of Investment has recorded the investment potential for the commodity at US$31.82 billion or Rp 518 trillion (at an exchange rate of Rp 16,294 per US dollar), with labour absorption of 23,160 workers, a contribution to Gross Domestic Product (GDP) of US$2.26 billion or Rp 36 trillion, and an export increase of US$11.3 billion or Rp 184 trillion.
Furthermore, Rizwan said the ministry is targeting to attract investment in downstreaming of up to Rp 521.4 trillion this year, covering 15 priority commodities based on the 2025-2029 National Medium-Term Development Plan (RPJMN).