Sunday, 18 November 2018 | 07:36 WIB

SOE Minister Asks SOEs to Develop Downstream Coal Industry to Optimize Exports

Illustration: Coal

JAKARTA, NNC - The SOE Minister Rini Soemarno requested that state-owned companies develop the downstream coal industry in an effort to optimize export value.

Rini's statement was written in the information disclosure of PT Bukit Asam (Persero) Tbk (IDX:PTBA) which was reported by the Indonesia Stock Exchange (IDX) in Jakarta on Thursday (11/08/2018).

"Indonesia must continue to develop the downstream coal industry not only in reducing imports, but in developing exports," said Rini in collaboration between PTBA and PT Pertamina (Persero) with a US company, Air Products.

PTBA and Pertamina agreed to work with Air Products and Chemicals Inc. regarding gasification of coal to dimethyl ether (DME) and synthetic natural gas (SNG) in US Allentown, yesterday.

According to PTBA's President Director Arviyan Arifin, the company's downstreaming is strengthened by coal resources of 8.3 billion tons and coal reserves of 3.3 billion tons.

"One of the products resulting from the downstreaming of coal is DME which is intended as LPG substitution," Arviyan said.

Meanwhile, President Director of Pertamina Nicke Widyawati said Pertamina's cooperation with PTBA and Air Products was a strategic step to increase national energy security, independence and sovereignty through the use of DME and SNG.

"About 70 percent of LPG is still imported. In 2017 Indonesia consumed no less than 7 million tons of LPG. This coal gasification plant is a strategic project nationally," Nicke said.

Nicke said cooperation with PTBA was to optimize the use of national-style resources.

"Pertamina and PTBA are two large state-owned enterprises in the country. So, this cooperation reflects the utilization of energy from within the country for the community," she explained.