Indonesia has recorded a US$2.3 billion investment in a coal-to-methanol downstream project, advancing its strategy to reduce methanol imports and increase value-added processing of domestic coal resources.
Director of Mineral and Coal Downstreaming at the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) Rizwan Aryadi Ramadhan announced the investment during the signing of the Front-End Engineering Design (FEED) Contract and Engineering, Procurement, Construction, and Commissioning (EPCC) Framework Agreement in Jakarta on Wednesday.
“We also extend our deepest appreciation for the US$2.3 billion investment, which will be realized through this project,” Rizwan said.
He expressed hope that the project’s investment value would continue to grow and generate broader economic benefits for communities around the project site as well as for Indonesia as a whole.
Rizwan also encouraged the project developers to ensure its long-term sustainability by strengthening national technological capabilities and creating knowledge-based added value through technology transfer.
“We also encourage this project to strengthen national technological independence and create knowledge-based added value through the transfer of knowledge,” he said.
According to Rizwan, the coal gasification project demonstrates how collaboration among stakeholders can support Indonesia’s strategic objective of reducing dependence on imported methanol.
“Together, we are strengthening resource sovereignty, creating jobs for thousands of Indonesians, and, most importantly, improving the welfare of communities surrounding the project,” he said.
State strategic project developer PT Bumi Etam Chemical (BEC) signed the FEED contract and the EPCC Framework Agreement for a coal-to-methanol gasification project in East Kutai District, East Kalimantan Province.
The agreements mark the start of the project’s front-end engineering phase and the preparation of the EPCC implementation framework ahead of construction of the coal-based methanol production facility.
The project is designed to produce 2 million metric tons of methanol annually using 7.78 million metric tons of low-calorie coal each year.
