Preparing LPG Replacement Project, PTBA to Process 7 Million Tonnes of Coal per Year

PT Bukit Asam Tbk (PTBA) will process 7 million tonnes of coal per year in a downstream project to produce Dimethyl Ether (DME). The DME project is intended as an effort to substitute imported LPG, thereby reducing the volume of LPG imports in the country.

The project, located in Tanjung Enim, is a collaboration between the Mining SOE Holding MIND ID, PT Bukit Asam Tbk (PTBA), and PT Pertamina (Persero). The project, which was inaugurated along with 12 others, has been designated as a National Strategic Project (PSN) in line with the vision of Indonesian President Prabowo Subianto.

PTBA’s Director of Downstreaming and Product Diversification, Turino Yulianto, explained that all raw material supplies will be sourced directly from the mine in Tanjung Enim, South Sumatra. He stated that the utilisation of this mining commodity is planned to achieve a DME production capacity of 1.4 million tonnes per year.

“For 1.4 million tonnes of DME, we use 7 million tonnes of coal per year. The coal comes entirely from Tanjung Enim, South Sumatra,” Turino said in his remarks in Tanjung Enim on Wednesday (29/4/2026).

“We are processing low-rank coal, which is coal that has not been utilised so far, and there is a lot of it in Indonesia. So once this project runs, God willing, if it continues to develop, we can utilise low-rank coal in Indonesia,” he added.

The factory will be built in the 585-hectare Bukit Asam Industrial Estate (Beki) area, supported by energy supply from the Sumsel 8 PLTU. In addition to strengthening energy resilience, this giant project managed by Danantara is projected to absorb a total of 5,380 workers during the construction and operation phases.

“DME is intended and will be absorbed by Patra Niaga, Pertamina. Thank you, Ms Ema, for absorbing our product and, God willing, substituting LPG which has been imported so far. So this is a project to strengthen national energy resilience,” he emphasised.