Technology Exists to Convert Indonesian Coal into Petrol!
The administration of President Prabowo Subianto has plans to develop the downstreaming of coal into fuel oil, specifically petrol. This initiative is being undertaken as an effort to strengthen national energy security and reduce dependence on fuel imports.
The plan to convert coal into petrol draws inspiration from the government’s success in implementing the B50 biodiesel programme, which blends 50% palm oil into fuel.
Responding to the plan, the Chairman of the Indonesian Mining Experts Association (Perhapi), Sudirman Widhy, stated that, in general, converting coal into gasoline is highly feasible.
“The technology for this already exists. South Africa is one of the countries that possesses this technology, where their company, SASOL, already has factory facilities for the Coal to Liquid process,” Sudermani Widhy told CNBC Indonesia on Wednesday (23/09/2026).
The initial process of converting coal into petrol, according to Widhy, is essentially the same as the process of converting coal into Dimethyl Ether (DME). This involves reacting coal with oxygen and steam at high temperatures or pressures to create synthesis gas (syngas), which is a mixture of CO and H2.
“This syngas is then further processed to produce methanol, and this methanol can subsequently be processed into DME or gasoline,” explained Sudirman Widhy.
However, Widhy cautioned that the primary challenge is not the technology itself, but rather the economics. This process will require significant capital expenditure (CAPEX) and operational costs, which may deter private investors from committing capital to coal-to-petrol production at this time.
“It is proven that some time ago, Air-Products from the United States withdrew and was reluctant to continue plans for DME production from coal, partly due to economic reasons,” Widhy asserted.
Previously, Prabowo stated that the development of fuel from domestic resources is the result of research and innovation by Indonesian academics, particularly from engineering faculties.
“Our professors, who are truly brilliant—not those other professors—from our engineering faculties have already succeeded in making diesel from palm oil, and can even make petrol from palm oil; we will also eventually make petrol from coal,” said Prabowo while attending the 100th Anniversary Thanksgiving of Pondok Modern Darussalam Gontor in East Java, as quoted on Sunday (20/09/2026).
According to Prabowo, the success of the B50 programme serves as evidence that Indonesia is capable of utilising domestic natural resources to meet national energy needs.
“Since 1st July, we have not imported diesel from abroad. Our diesel supply is now self-sufficient,” he stated.
Prabow emphasised that diesel self-sufficiency is a crucial step amidst global uncertainties, which continue to be shadowed by geopolitical conflicts and energy supply chain disruptions.