Jakarta, TAMBANG, – The government is increasingly serious about working on coal downstreaming. One of them is by encouraging the downstreaming of coal into Dimethyl Ether (DME) products. This DME product is predicted to replace the role of LPG. One of those who will be partnered with in developing this DME is PT Pertamina (Persero). This state-owned energy company will collaborate with the Indonesian Mining Industry Holding MIND ID to strengthen national energy resilience and independence.
This collaboration is focused on accelerating the downstreaming of coal into alternative energy products to replace LPG. Through gasification process technology, coal will be converted into Synthetic Natural Gas (SNG), then processed for purification and dehydration into Dimethyl Ether (DME), as an alternative energy to replace LPG.
This transformative step was marked by the signing of a strategic collaboration between Pertamina and MIND ID which was witnessed by BPI Danantara’s Chief Technology Officer (CTO) Sigit Puji Santoso, Friday (9/1).
This initiative is a concrete manifestation of the active role of BUMN Energy and Mining collaboration in carrying out the mandate given by the government to support the downstream and industrialization agenda through the use of coal gasification technology.
Danantara Indonesia Chief Technology Officer Sigit P. Santosa, said that the collaboration between Pertamina and MIND ID reflects an integrated approach in developing the national energy system. As a large country, Indonesia really needs energy diversification that can support development.
“Collaboration and synergy between strategic BUMNs can strengthen the national energy foundation. Technology-based downstreaming is an important instrument for optimizing the use of domestic resources while building an energy system that is more resilient, efficient and long-term oriented,” said Sigit.
In this collaboration, Pertamina plays the role of offtaker and aggregator of distribution infrastructure. With its superior distribution network, Pertamina ensures that downstream coal products, such as Dimethyl Ether (DME), Synthetic Natural Gas (SNG) and methanol, can be absorbed and distributed effectively to the public and industry as a substitute for energy obtained through imports.
President Director of PT Pertamina (Persero), Simon Aloysius Mantiri stated that this collaboration was a historical milestone for Indonesia’s energy sovereignty.
“As the backbone of national energy, we are committed to optimizing Pertamina’s distribution infrastructure to support this downstreaming through collaboration with MIND ID. This is a concrete step in reducing dependence on LPG imports and ensuring more affordable energy is available to the people, in line with the government’s energy self-sufficiency target,” said Simon.
Meanwhile, MIND ID Main Director Maroef Sjamsoeddin emphasized that this collaboration is part of efforts to strengthen the national industrial structure through developing domestic mineral, coal and energy value chains.
“Through collaboration with Pertamina, MIND ID is committed to encouraging downstreaming that provides added economic value, reduces dependence on imports, increases competitiveness, opens up new jobs, and strengthens national energy security in the long term,” said Maroef.
The Ministry of Energy and Mineral Resources projects that national LPG consumption will reach 10 million metric tons (MT) in 2026, while domestic production will only reach 1.3–1.4 million MT.
The Pertamina – MIND ID synergy through the use of Coal to DME and Coal to SNG is a strategic solution to cover this deficit using domestic natural resources, as an effort to strengthen the resilience and independence of the national energy sector.
Pertamina, as a leading company in the energy transition sector, is committed to supporting the 2060 Net Zero Emission target and continues to encourage programs that have a direct impact on the achievement of Sustainable Development Goals (SDGs).
Source: www.tambang.co.id
