Ministry of Energy Targets East Kalimantan and South Sumatra for Coal-to-Fuel Projects

The Ministry of Energy and Mineral Resources (ESDM) is targeting East Kalimantan and South Sumatra to serve as locations for projects processing low-calorific coal into fuel blends, such as petrol and diesel.

“There are several projects underway in East Kalimantan. We are pushing for similar activities to be established in South Sumatra or other regions with significant coal potential,” stated Deputy Minister of Energy ESDM, Yuliost, following a visit to the Kalibata Heroes Cemetery in Jakarta on Tuesday.

Yuliot noted that the first stone has already been laid for a National Strategic Project (PSN) involving coal gasification into methanol at the Batuta Chemical Industrial Park (BCIP) in East Kutai Regency, East Kalimantan. The methanol produced from this coal gasification will subsequently be used as a component for fuel blending.

“Methanol can be utilised for blending into liquid fuels,” Yuliot added.

President Prabowo Subianto has emphasised the importance of food and energy independence as the foundation for Indonesia to stand on its own strength without relying on other nations, during a reception in Ponorogo, East Java, on Saturday. In his address, Prabowo mentioned plans to produce petrol from coal, following the successful production of diesel from palm oil.

“We have successfully produced diesel from palm oil and can also produce petrol from palm oil. Moving forward, we will also produce petrol from coal,” said Prabowo.

The Minister of Energy and Mineral Resources, Bahlil Lahadalia, expressed readiness to implement President Prabowo Subianto’s directives to convert coal into petrol. “As the Minister of Energy, we will follow up on every command and directive from the President regarding optimisation to enhance energy security by utilising domestic energy sources,” Bahlil stated.