Indonesia has plenty of coal resources that must be processed or gasified, so that this coal can be used as Dimethyl Ether (DME) to replace liquified petroleum gas (LPG), as LPG prices have currently increased in the market
State-Owned Enterprises (SOEs) Minister Erick Thohir encourages the processing or gasification of coal mining materials into gas in order to meet the current gas energy requirements.
“Indonesia has plenty of coal resources that must be processed or gasified, so that this coal can be used as Dimethyl Ether (DME) to replace liquified petroleum gas (LPG), as LPG prices have currently increased in the market,” Thohir stated during his speech at the University of Muhammadiyah Malang, monitored virtually on Saturday.
Furthermore, Thohir believes that this change cannot be brought about immediately, as Indonesia needs time, investment, and technology to start the process. However, he pressed for starting it from now.
“In 2060, coal will no longer be used for electricity. This is because we will produce electricity from new and renewable energy sources, such as solar, geothermal, water, and wind. Now, while we are still able to process coal, and we will conduct gasification for gas,” Thohir explained.
Earlier, Thohir noted that the coal gasification project could cut LPG imports while boosting the national economy. Coal gasification has a direct added value to the national economy on a macro basis. It will save the trade balance, lower dependence on LPG imports, and save foreign exchange reserves. Pertamina had inked a cooperation amendment in the coal gasification project (DME Coal) on Tuesday, January 11. This agreement is also a Processing Service Agreement (PSA) on the coal gasification process, which is one of the government’s programs to boost national energy security.
The minister welcomed this collaboration, as he assessed that coal gasification is a step to improve the national economy in general. In addition to maximizing its potential, this project will eliminate dependence on imported projects, he remarked.