Indonesia Advances Coal-to-DME Project to Replace LPG Imports

Project Timeline and Technology Selection

Indonesia is poised to commence construction on a groundbreaking Dimethyl Ether (DME) project in February 2026, as announced by Rosan Roeslani, CEO of Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara). The project aims to replace Liquified Petroleum Gas (LPG) through coal gasification technology, marking a significant step in the country's energy diversification efforts.

The selection of processing technology is currently being finalized under the oversight of BPI Danantara's Chief Technology Officer, Sigit. This technological decision is crucial as it will determine the efficiency and viability of converting coal into DME, a cleaner alternative to LPG.

Strategic Importance of the DME Project

The DME project represents a strategic move by Indonesia to reduce its dependence on LPG imports while leveraging its abundant coal reserves. By developing this domestic industry, Indonesia aims to enhance energy security and potentially create new economic opportunities in the coal value chain.

The project's success could have far-reaching implications for Indonesia's energy landscape, potentially reducing the country's LPG import bill and creating a more sustainable energy mix. However, the transition also requires careful consideration of environmental impacts and technological challenges associated with coal gasification.