Bahlil Explains Air Products Investment Project of IDR 219 T in RI

Jakarta

The Minister of Investment/Head of BKPM Bahlil Lahadalia revealed what investments were flowing from the collaboration with Air Product. Bahlil said that after the agreement was signed in early 2022, an investment of US$ 15 billion or equivalent to Rp 219 trillion (exchange rate of Rp 14,600) would flow to 3 important projects.

“First, the DME project in South Sumatra, construction is already underway. Second, methanol with KPC in East Kalimantan,” said Bahlil, quoted from a press statement on the Presidential Secretariat YouTube, Friday (13/5/2022).

While the third is the project to build methanol and ethanol in Cepu. “This is Mr. President to build downstream products that can be used as import substitutions,” he continued.

Bahlil has a specific target for the DME project, around 50% of which must be processed domestically. This is done to reduce LPG subsidies, which every year are revealed to have drained state revenues of up to tens of trillions.

Based on data from Pertamina, Indonesia imports around 7-8 million tons of LPG per year. Bahlil explained that the subsidy for 1 million tons of LPG could reach around Rp. 13 trillion.

“You can imagine multiplied by 6-7 million, our total subsidy on our LPG gas is IDR 80 trillion-90 trillion. The president ordered us to really focus on developing DME and methanol downstreaming. Specifically for methanol, 80% of our needs are still imported. ,” he continued.

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