Govt to Offer Incentives to Downstream Coal Projects

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 011.Pers/04/SJI/2021

Date: 9 January 2021

Govt to Offer Incentives to Downstream Coal Projects

Minister of Energy and Mineral Resources (EMR) Arifin Tasrif said the Indonesian Government will offer various incentives to downstream coal processing projects.

"We'll offer various incentives, so downstream (coal) projects will be economical and competitive," said Minister Arifin at the press conference on Performance Report of 2020 and Work Program for 2021 of the EMR Sector on Thursday (7/1).

One of the downstream projects being carried out is gasification of low-calorie coal into Dimethyl Ether (DME).

If the gasification project develops well, continued Arifin, it can significantly curb imports of Liquefied Petroleum Gas (LPG) because DME product can substitute LPG.

"The product from downstream coal processing can substitute LPG. If we can substitute LPG, we can save a large amount of our foreign exchange. The use of LPG has continued to increase annually, but we have coal to produce DME," said Arifin. (IY)

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

Agung Pribadi (08112213555)

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