DME Project Cooperation, a Milestone in Downstream Coal Processing

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 394.Pers/04/SJI/2020

Date: 10 December 2020

DME Project Cooperation, a Milestone in Downstream Coal Processing

Cooperation commitment on gasification of coal into Dimethyl Ether (DME) was officially agreed and reaffirmed on Thursday (10/12) evening. The cooperation involves national energy company PT Pertamina (Persero), state coal miner PT Bukit Asam, Tbk., and gas producer Air Products and Chemicals Inc.

In his opening remarks, Minister of Energy and Mineral Resources (EMR) Arifin Tasrif said the development of DME can substitute LPG for household use. Thus, it can reduce LPG imports which currently reaches more than 70%.

"This is one of the milestones in the national downstream coal processing, particularly in DME development. In the future, I hope more efficient technologies are used to produce DME products that are competitive with LPG," said Arifin.

Arifin hopes the cooperation runs smoothly as planned. "I hope the cooperation in DME development will run smoothly and continuously, and is implemented on time," Arifin said.

The reaffirmation was made by President Director of PT Bukit Asam Tbk (PTBA) Arviyan Arifin, President Director of PT Pertamina (Persero) Nicke Widyawati, and CEO of Air Products and Chemical Inc. Seifi Ghasemi, witnessed by Minister of EMR Arifin Tasrif.

The arrangement covers a principal agreement to be set out and valid for PTBA, Pertamina, and Air Products.

"This cooperation is in line with the government's strategy to use Indonesia's coal surplus which reserves are enough for the next 60 years, while helping to reduce the trade balance deficit. To Pertamina, with our current downstream infrastructure and the fact there is not much technical modification, we're optimistic the conversion program will run well," said Nicke Widyawati, President Director of PT Pertamina (Persero).

Consistent with Nicke, President Director of PTBA Arviyan Arifin said that since the agreement was signed in 2018, the three parties have followed it up with a number of discussions and study to reach the current arrangement.

"I hope this arrangement makes a good start for energy security and can encourage other companies to do the same in supporting the government strategies," said Arviyan.

Similar optimism was expressed by CEO of Air Product Inc. Seifi Ghasemi. "We're proud to be part of this agreement to build conversion facilities from coal to DME. We believe Indonesia will become a great country in the future and we're ready to cooperate and invest in Indonesia," he said.

The coal gasification project refers to the processing of coal into DME as an alternative to LPG. The project has been developed and carried out jointly by PTBA and PT Pertamina (Persero), with Air Products and Chemicals Inc. investing about USD2.1 billion.

Presidential Regulation Number 109 of 2020 signed by President Joko Widodo on 17 November 2020 has set out the coal gasification plant in Tanjung Enim regency in South Sumatra province as a National Strategic Project (PSN). (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

Share This!