Investment for the project comes from an American company and not from Korea, Japan, or China.
Jakarta (ANTARA) - The downstream coal-to-dimethyl ether (DME) project in Muara Enim District, South Sumatra Province, demonstrates that Indonesia does not draw investment from just one country, Investment Minister/Investment Coordinating Board Head Bahlil Lahadalia stated.

"Investment for the project comes from an American company and not from Korea, Japan, or China. Thus, it is not true that Indonesia only focuses on one country's investment," the minister stated at the groundbreaking event monitored online here on Monday.

Lahadalia noted that the Rp33-trillion project was the second-largest investment realization from the US after Freeport’s copper smelter project, worth Rp42 trillion, started in October 2021.

The project is a collaboration among a state-owned mining enterprise Inalum’s subsidiary PT Bukit Asam (PTBA), oil and gas state firm PT Pertamina, and an American company, Air Products and Chemicals Inc.

Under the cooperation, PTBA, as a mining company, will supply coal as the raw material for DME.

Meanwhile, PT Pertamina (Persero) will become the offtaker of the product aimed at replacing the use of liquefied petroleum gas (LPG) since Indonesia’s spending on importing LPG had reached Rp80 trillion.

Air Products & Chemicals Inc. will be the investor in terms of technology and development.

Furthermore, the minister remarked that the project will be able to absorb 12-13 thousand workers during the construction stage.

Moreover, with the downstream project becoming operational, 11-12 thousand new job opportunities will be created.

The minister has ensured that all employment opportunities will be available for Indonesian workers since he had urged the American enterprise to prioritize employment opportunities for Indonesian people.

Lahadalia also spoke of his side having urged the American corporation to expedite the establishment of the coal-to-DME processing plant.

"Initially, the plant will be constructed in 36 months. However, we had urged Air Products & Chemicals Inc. to complete it in 30 months," he added.

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Translator: Ade Junida, Uyu Liman
Editor: Sri Haryati
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