PTBA Targets New Coal Downstreaming Businesses Beyond DME

PT Bukit Asam Tbk (PTBA) is developing a coal downstreaming programme for long-term growth. In addition to the coal gasification project into Dimethyl Ether (DME), the company has begun producing other derivatives such as methanol and potassium humate.

PTBA’s Finance and Risk Management Director, Una Lindasari, explained that this is one of the company’s efforts to increase added value. Each project to be undertaken is evaluated selectively, taking into account its economic value and technological readiness.

“Downstreaming is one of our focuses to create greater added value. We see broad potential in PTBA’s resources to be developed into value-added products, including DME, methanol and potassium humate,” said Una during PTBA’s Public Expose, quoted on Tuesday (8/9/2026).

PTBA currently operates a potassium humate pilot plant with a capacity of 171 tonnes per year and is targeting development of up to 10,000 tonnes per year. In addition, the company is expanding its portfolio into the renewable energy sector through the development of Solar Power Plants (PLTS) on post-mining land, with capacity having reached 1.2 Mega Watts (MW).

“Going forward, PTBA will continue to identify various potential projects in downstreaming, renewable energy, asset and post-mining land optimisation, as well as other potential business areas,” she added.

Furthermore, PTBA’s Director of Downstreaming and Product Diversification, Turino Yulianto, explained the readiness of the physical work on the coal gasification project. He stated that this strategic project is currently in the final feasibility study stage under the coordination of the Daya Anagata Nusantara Investment Management Agency (BPI Danantara).

“The DME’s function is to reduce imported LPG substitution, while SNG is to cover the shortage of gas supply for industry. Both are national strategic programmes. God willing, construction will begin next year,” he explained.

The DME project will later be supplied to Pertamina Patra Niaga as the offtaker, while the SNG project will be channelled through PGN. PTBA is targeting contributions from all downstreaming and diversification business lines to reach 20% of the company’s total revenue within the next four years.

“We are developing this diversification in stages. We have targeted that within the next four years, the contribution from downstreaming and diversification will be around 20% of the company’s total revenue,” he concluded.