Jakarta, CNBC Indonesia – Liquefied Petroleum Gas (LPG) will be replaced to encourage low-calorie coal. However, until now, it is not known how much the replacement price for this LPG will be.
Acting. PT Pertamina Patra Niaga Corporate Secretary Irto Ginting said that currently the price determination is still in the review stage and will be in accordance with the government’s policy regarding the distribution of Dimethyl Ether (DME).
“Currently, the determination of the DME price is still in the study stage which will of course be adjusted to the policies issued by the government regarding the distribution of DME,” he told CNBC Indonesia, Friday (12/11/2021).
Regarding the form, this LPG substitute will also be distributed in the form of tubes to reach consumers. Previously, the Director of Coal Development and Concession of the Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources (ESDM) Sujatmiko said the government was still reviewing the plan for subsidizing DME products.
He said, if the gasification project benefits the state economically, then there will be a government assignment. With this assignment, the subsidy will be given to DME products.
“Subsidies, the government is considering and reviewing government assignments, if all later, for example, all economic value will benefit the state, then there will be government assignments. With this assignment, subsidies will be given to DME,” he explained, Monday (23/02/2021).
According to him, if the subsidy is still given equal to the amount of Liquefied Petroleum Gas (LPG) subsidy, but at least DME products do not need to be imported.
“We still have subsidies, but we don’t import LPG,” he said.
Previously, the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said that Indonesia had achieved an investment commitment of around US$ 13 billion-US$ 15 billion or around Rp. 185 trillion to Rp. 213 trillion (assuming an exchange rate of Rp. 14,200 per US$). Air Products and Chemicals Inc. (APCI).
Air Products’ investment commitment is for a coal mining downstream project that will process low-calorie coal into DME, methanol or other chemical products to replace LPG.
This is stated in the Memorandum of Understanding (MoU) signed between BKPM and APCI last week, Thursday (04/11/2021) in Dubai, UAE, and witnessed directly by Indonesian President Joko Widodo (Jokowi).
(hps / hps)
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