Indonesia to Decide on DME Project to Replace LPG by December

Government to Finalize Decision on Coal Gasification Project

The Indonesian government is poised to make a final decision on a significant dimethyl ether (DME) project in December 2025. The project aims to replace Liquified Petroleum Gas (LPG) with DME produced through coal gasification. According to Minister of Energy and Mineral Resources Bahlil Lahadalia, the decision follows extensive discussions with President Prabowo Subianto and Head of BPI Danantara Rosan Roeslani.

Project Timeline and Implications

If approved, the construction of the DME project is expected to commence in 2026. The project represents a strategic move to utilize Indonesia's coal resources more effectively and reduce dependence on LPG. The DME project is seen as a crucial step in diversifying Indonesia's energy mix and enhancing energy security.

Key Players and Decision-Making Process

The decision-making process involves key stakeholders, including the Ministry of Energy and Mineral Resources, the President's office, and BPI Danantara. The collaboration between these entities underscores the government's commitment to advancing the project. The final decision in December will be pivotal in determining the project's future and its potential impact on Indonesia's energy landscape.