Indonesia to Implement Chinese Technology in DME Project

Background and Project Overview

The Indonesian government is moving forward with its Dimethyl Ether (DME) project, which aims to replace Liquified Petroleum Gas (LPG) by gasifying coal. Minister of Energy and Mineral Resources, Bahlil Lahadalia, announced that the project will utilize Chinese technology. This decision comes as part of Indonesia's efforts to reduce dependence on LPG imports and leverage its domestic coal reserves.

Feasibility Study and Implementation Timeline

The state-owned company Danantara is currently conducting a final feasibility study for the project, which is expected to be completed by December 2025. The study involves collaboration with various consultants to assess the project's viability. After the study is completed, the government will determine the project locations, which will be based on the availability of coal reserves.

Significance and Implications

The DME project is a significant step in Indonesia's energy strategy, aiming to reduce the country's reliance on LPG imports. By utilizing domestic coal reserves and Chinese technology, Indonesia hopes to achieve greater energy self-sufficiency. The project's success could also have positive implications for the local economy and energy security.