PT Bukit Asam Resumes Coal Downstreaming Project

DME Production to Replace LPG

PT Bukit Asam Tbk (PTBA) is set to revive its coal gasification project in 2026, focusing on producing Dimethyl Ether (DME) as a substitute for LPG. This project aligns with the government's downstreaming policy aimed at enhancing the value of coal products and strengthening national energy security. The DME project is one of six downstreaming initiatives scheduled for groundbreaking ceremonies starting in early February 2026.

Project Background and Previous Developments

PTBA had previously initiated the DME project but was forced to halt it due to the withdrawal of its strategic partner, Air Products & Chemical from the United States. Despite this setback, PTBA remains committed to supporting the national downstreaming agenda. According to Eko Prayitno, Acting Corporate Secretary Division Head of PTBA, the company is dedicated to continuing the project to add value to coal and enhance energy resilience.

Significance of the DME Project

The DME project is crucial for Indonesia as it aims to reduce dependence on LPG imports by utilizing domestic coal resources. By converting coal into DME, PTBA is contributing to the government's efforts to optimize the use of natural resources while promoting energy security. This initiative is also expected to create additional economic value and potentially open new job opportunities in the energy sector.