LPG Replacement Project Targeted for Completion Within 3 Years
Tanjung Enim, CNBC Indonesia - The Chairman of the mining holding company Mining Industry Indonesia (MIND ID), Fuad Bawazier, has revealed that the Phase 2 coal downstreaming project to develop coal into Dimethyl Ether (DME) by PT Bukit Asam Tbk (PTBA) in Tanjung Enim, South Sumatra, is targeted for completion within the next three years.
According to him, the DME project is expected to be fully realised after previously being delayed for years. He cautioned against repeating past experiences.
“Do not let that happen again. Hopefully, with Mr Herman (Governor of South Sumatra), the DME will be realised,” he stated during the groundbreaking ceremony for the Phase 2 coal downstreaming project to develop coal into Dimethyl Ether (DME) in Tanjung Enim, South Sumatra, quoted on Thursday (30/4/2026).
Fuad assured that government projects have always been pursued with completion targets, regardless of various economic calculations such as IRR or costs. He urged all parties to provide support so that the projects can proceed as planned.
“So please help him truly. So that all projects can be realised. So that it is truly realised, how many years is this? 3 years, approximately. So Mr Herman, come back in 3 years,” he said.
Meanwhile, the Director of Downstreaming and Product Diversification at PT Bukit Asam Tbk (PTBA), Turino Yulianto, emphasised that the coal downstreaming project into Dimethyl Ether (DME) is part of a National Strategic Project (PSN) that plays a crucial role, particularly in strengthening national energy resilience.
According to him, the project employs clean coal technology capable of reducing emissions by 30-40% compared to direct coal burning. The DME project was initiated by BPI Danantara and is being executed by MIND ID together with PT Bukit Asam Tbk (PTBA) and Pertamina.
“This project uses what is termed clean coal technology where emissions can drop by 30-40% compared to burning coal directly,” he said during the groundbreaking ceremony for the Phase 2 coal downstreaming project to develop coal into Dimethyl Ether (DME) in Tanjung Enim, South Sumatra, on Wednesday (29/4/2026).
Turino explained that the DME factory to be built is designed with a production capacity of 1.4 million tonnes per year, equivalent to around 1 million tonnes of LPG. The DME product will subsequently be absorbed by Pertamina through Pertamina Patra Niaga.
He added that the coal to be processed is low-rank coal or low-calorie coal, which has not been optimally utilised so far, while its availability in Indonesia is quite abundant.