The Indonesian government, through the Ministry of Industry (MoI), is collaborating with China's Beiken Energy Group Co., Ltd. to develop a Coal to Chemical project. This initiative is part of efforts to enhance the national chemical industry’s supply chain by utilizing coal as a raw material for high-value petrochemical products.
Industry Minister Agus Gumiwang stated that Indonesia holds great potential in this sector, especially in producing downstream derivatives such as methanol, olefin, propylene, polyolefin, and BDO. Beiken’s coal gasification technology is seen as a key enabler to convert low-calorie coal into high-value chemical outputs, in line with Indonesia’s industrial downstreaming agenda and reducing dependency on imported raw materials.
