Jokowi conveys priorities for development of coal derivative industry

Jokowi conveys priorities for development of coal derivative industry

Illustration. A coal barge crosses the Musi River, Palembang, South Sumatra. Antara Foto / Nova Wahyudi / wsj.

Jakarta (ANTARA) - President Joko Widodo (Jokowi) conveyed several priorities for development of the coal derivative industry.

"Several priorities can be worked upon, such as the coal gasification program or DME (dimethyl ether) to gasify coal into syngas, a requirement for the petrochemical industry, and DME, which is very important as a substitute for LPG since we still import it. Thus, it can reduce our LPG imports," President Jokowi stated at the Presidential Palace, Bogor, on Friday.

President Jokowi conveyed the statement at a limited meeting themed "Accelerating the Increasing Value of Coal" held through videoconferencing.

DME, or dimethyl ether, was developed as an alternative fuel to replace LPG, while syngas, which stands for synthetic gas, is an energized gas produced through the coal gasification process to be utilized as raw material for chemical industries, such as fertilizers and petrochemicals, electricity, and city gas.

"The road map for optimization of domestic coal should be really accelerated through the application of environmentally friendly technology," the head of state emphasized.

President Jokowi urged his ministers to determine the downstream product strategy to be developed.

"Hence, it is clear which direction we will head on, how much will be converted into gas, how much will be converted into petrochemicals, and the areas that will be developed into the downstream coal industry anywhere," the president stated.

The head of state also gave instructions that areas, with reserves of coal resources, should be able to guarantee sufficient coal supply in the downstream coal industry.

"Earlier, I would like to remind you that we all have to shift from exporting raw materials from countries, and one of them is coal, in order to become industrialized countries that are able to process raw materials into finished goods or semi-finished goods. I think this is a big strategy that we must be consistent in implementing it," the president explained.

To this end, the Indonesian coal industry is urged to move into the development of the coal derivative industry, starting from the quality improvement industry, the manufacture of coal briquettes, the manufacture of coke (high-calorie coal), coal liquefaction, and coal gasification to coal mixture.

"I believe that developing this coal derivative industry can increase the added value of commodities many times, reduce the core of raw materials needed by domestic industries, such as the steel industry, the petrochemical industry, and no less importantly, we can create as many jobs as possible," the president expounded. Related news: President orders acceleration of coal derivative industry development
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