Methanol Plants to be Built in Aceh and East Kalimantan, Targeted for Completion in 40 Months

JAKARTA - The President Director of PT Pupuk Indonesia (Persero), Rahmad Pambudi, stated that the construction of two methanol plants will take up to 40 months, or about three years. PT Pupuk Indonesia has been assigned by the government to build methanol production facilities. This step is to support the B50 policy plan, a mixture of 50 percent biodiesel and 50 percent diesel. “That will take about 40 months to build,” Rahmad said when met at the Parliamentary Complex, Senayan, Jakarta, on Tuesday (7/4/2026). Rahmad has not detailed the investment value for the two methanol plant projects in Lhokseumawe, Aceh, and Bontang, East Kalimantan. The capital expenditure calculation is still ongoing. “This is currently being calculated for CAPEX. But clearly, we have agreed on the required volume,” Rahmad said. The plants are planned to be built in Aceh and East Kalimantan. The main considerations include gas sources and the availability of industrial zones. These locations are deemed to accelerate the construction process so that methanol supply can be available soon. “So if instructed to build there, it can be faster,” Rahmad stated. The B50 policy has the potential to drive imports up to 2.5 million tonnes. Separate opportunities indicate that methanol needs in 2025 will reach 1.8 million tonnes. Domestic production capacity is currently around 400,000 tonnes. “Without this construction, we will increase imports to 2.5 (million tonnes),” Rahmad said.