Thursday, 17 July 2025 09:41

BKPM: Investors Show Great Interest in Indonesia's Coal Downstreaming

The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) stated that it has received a lot of investment interest in the coal downstream sector, with proposals for alternative technologies for processing this commodity. "There has been quite a lot of interest, and we have tried to absorb the input. Several technologies have been proposed by PT Bukit Asam Tbk. and also PT Perusahaan Gas Negara Tbk. (PGN) to promote alternative technologies for processing coal," said Rizwan Aryadi Ramdhan, Director of Mineral and Coal Downstreaming (Minerba), Ministry of Investment and Downstreaming/BKPM, in Jakarta on Wednesday. In the 2023-2040 coal downstreaming roadmap, the target for downstreaming this commodity is to 100 percent subsidize certain liquefied petroleum gas (LPG) into Dimethyl Ether (DME), as well as meet domestic coke/semi-coke needs. The target downstream coal products are DME, methanol, and coke/semi-coke.

Furthermore, the government set the coal reference price (HBA) for the first period in July 2025 at USD 107.35 (IDR 1.74 million) per ton, an increase of USD 8.74 (Rp 141.7 thousand) or 8.86% per ton compared to the HBA for the second period in June 2025 of USD 98.61 (IDR 1.59 million) per ton. This HBA is regulated in Minister of Energy and Mineral Resources Decree Number 72 of 2025 concerning Guidelines for Determining Benchmark Prices for the Sale of Metal Mineral Commodities and Coal. The Ministry of Investment noted that the investment potential for this commodity reached USD 31.82 billion (IDR 518 trillion) (at an exchange rate of IDR 16,294 per US dollar), with employment of 23,160 people, a contribution to Gross Domestic Product (GDP) of USD 2.26 billion (IDR 36 trillion), and an increase in exports of USD 11.3 billion (IDR 184 trillion). Rizwan further stated that this year, his ministry is targeting to attract investment in the downstream sector of up to IDR 521.4 trillion, with 15 priority commodities based on the 2025-2029 National Medium-Term Development Plan (RPJMN).

Source:
https://www.tempo.co/ekonomi/bkpm-investor-banyak-minati-hilirisasi-batu-bara-ri-2015688 

 

 

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