PTBA Prepares Coal Downstreaming into Gas and Soil Fertility Products

PT Bukit Asam Tbk (PTBA) has reaffirmed its commitment to promoting coal downstreaming as part of its transformation into a world-class energy company. PTBA’s President Director, Arsal Ismail, stated that the downstreaming programme currently underway is a strategic step to increase added value. Through this initiative, PTBA supports the government’s agenda to strengthen national energy and food security. “Through downstreaming, we are committed to supporting the implementation of the government’s Asta Cita, particularly in strengthening national energy and food security,” Arsal said during a Working Meeting with Commission XII of the House of Representatives on Monday (13/4/2026). Arsal detailed one of the projects being developed as the coal-to-synthetic natural gas (SNG) project. This project aims to provide an alternative gas supply, particularly in the South Sumatra to West Java region. In its development plan, the SNG project requires around 9 million tonnes of coal and is targeted to produce a capacity of 237 BBTUD. In the development scheme, PTBA will form a joint venture with PT Perusahaan Gas Negara Tbk (PGN), which will also serve as the 100% off-taker of the SNG produced. “Economically, the SNG product will be able to provide added value of up to 5.7 times compared to raw coal sales,” Arsal said. Besides SNG, PTBA is also developing a coal-to-dimethyl ether (DME) downstreaming project as a substitute for imported LPG. This project is targeted to have a capacity of around 1.4 million tonnes and is expected to provide added value of up to 4.3 times. In its implementation, PTBA will act as the factory operator as well as the coal supplier. Meanwhile, Pertamina will be the off-taker absorbing the entire DME production. “This is still in process; we are proceeding with Danantara, hopefully the economics will make PTBA even better,” he said. Not only that, PTBA is also venturing into downstreaming to support food security through the development of potassium humate products. This product, resulting from collaborative research with UPN, functions as a soil conditioner that can improve soil fertility. “As a commercialisation stage, a factory is planned with a capacity of 10,000 tonnes per year. This product certainly has very significant added value, reaching up to 29 times compared to raw coal,” he said.