Jakarta, CNBC Indonesia– The coal gasification project in Tanjung Enim, South Sumatra, which was initiated by PT Bukit Asam Tbk (PTBA) was determined to be a national strategic project (PSN) through the issuance of Presidential Regulation (Perpres) No. 109/2020 signed by President Joko Widodo on November 17 2020.
Perpres Number 109 of 2020 is a revision of Presidential Decree No.3 of 2016 concerning the acceleration of the implementation of National Strategic Projects. In the previous Presidential Decree, the coal gasification project PTBA with PT Pertamina (Persero) and Air Products and Chemical Inc was included as a national priority project.
Apart from the coal gasification project, the government has also designated the Tanjung Enim Industrial Estate as part of a national strategic project. Tanjung Enim will become an industrial area for the development of the coal downstream industry.
PTBA Corporate Secretary Apollonius Andwie C, said that the increasing status of the coal gasification project as a National Strategic Project is a positive signal and great support from the government to accelerate the optimization of the abundant natural resources in this country in order to increase economic growth, equitable development and community welfare as stated in the objectives of Presidential Decree Number 109 of 2020.
“The coal gasification project is a program to process coal into dimethyl ether (DME) to be used as an alternative to LPG. This project was developed and implemented jointly between PT Bukit Asam Tbk (PTBA), PT Pertamina (Persero), and Air Products and Chemicals Inc. as an investor with an investment of around US $ 2.1 billion, “he said Tuesday (12/1/2020).
He explained that the coal gasification plant will process as much as 6 million tons of coal per year to be processed into 1.4 million tons of dimethyl ether (DME). This product can help reduce LPG imports by more than 1 million tons per year.
“The reduction in LPG imports can save the country’s foreign exchange reserves of Rp. 8.7 trillion per year or Rp. 261 trillion for 30 years,” he explained.
In addition, he said, this project brings a number of benefits that have been mentioned above, the downstreaming of coal of course also has a multiplier effect or a sustainable effect for Indonesia.
Among them are
– Multiplier effect in the form of direct benefits to the government of Rp. 800 billion per year or Rp. 24 trillion for 30 years
– Trade balance savings of approximately IDR 5.5 trillion per year or IDR 165 trillion for 30 years
– Empowerment of the national industry by involving local workers and absorbing a total workforce of 10,570 people during the construction phase and 7,976 people during the operation period
“The coal gasification project should not only be viewed from a commercial perspective, but should also be seen as a pioneer project to support Indonesia’s energy resilience and independence in the future,” he said.
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