📋 Tender Overview
In a working meeting between the Ministry of Energy and Mineral Resources ESDM and Commission VII of the Republic of Indonesias House of Representatives DPR Minister of Energy and Mineral Resources Arifin Tasrif explained that the coal gasification project of PT. Bukit Asam PTBA to Dimethyl Ether DME is targeted to have a Commercial Operation Date COD in the fourth quarter of 2027.PTBA will produce 1.4 million tons of DME per year with 6 million tons of coal as raw material said Arifin in the Meeting Room of Commission VII DPR RI Jakarta Monday 2111.Arifin said the impact on the government would be quite large if the coal gasification project was already in operation which could reduce imports of Liquefied Petroleum Gas LPG by 1 million tons per year so that there would be savings in foreign exchange for LPG imports of 9.1 trillion rupiah per year and there would be added investment of USD 2.1 billion.In terms of employment absorption during the construction phase the coal gasification project to DME will absorb 10600 workers while during the operation stage it will absorb 8000 workers he added.Meanwhile Arifin said the benefit for PTBA was the use of low calorie coal GAR 4000 calories which so far had a low selling value. Then PT Pertamina Persero as the absorber of DME products will get a margin from sales and become the sole distributor of DME sales.However to smooth the operation of this coal gasification project Arifin said that the project requires regulatory support and incentives. Among other things the reduction of coal royalty rates specifically for coal gasification to 0.The Ministry of Finance has approved the principle permit but it has not been followed up because they still have to wait for the revision of the Job Creation Law he said.In addition special coal price regulations are needed to increase added value for gasification purposes carried out at the mouth of the mine.Then other support is in the form of a draft Presidential Decree on the Supply Distribution and Pricing of DME as fuel following the provisions of the oil and gas sub-sector.The drafting process has entered the harmonization stage led by the Ministry of Law and Human Rights and has been carried out twice but there are still issues related to the financing of the starter pack and the obligation to provide subsidies he concluded.For information PTBAs coal gasification project to become DME is listed as a National Strategic Project in Presidential Decree No. 109 of 2020 dated 20 November 2020. And the groundbreaking was carried out by President Joko Widodo on 24 January 2022. DAN
