TEMPO.CO, Jakarta - State energy company Pertamina signed a Memorandum of Understanding on Strategic Coal Gasification Cooperation with Indika Energy (IDX: INDY) and several other national mining companies on Monday, December 7. The cooperation is aimed at supporting the development of alternative energy in Indonesia.
Through this collaboration, the companies will hold a joint study to boost the coal gasification program to obtain alternative energy sources. One of the processes is turning coal into DME (Dimethyl Ether) as a substitute fuel for LPG.
Pertamina president director Nicke Widyawati said gasification can utilize coal and turn it into alternative energy. "And at the same time reducing LPG imports," she said.
Pertamina's president commissioner Basuki Tjahaja Purnama, also known as Ahok, had criticized the government's coal and biodiesel gasification program, saying it is not economical.
"DME as a substitute for LPG is attractive, but may require subsidies because DME is more expensive than LPG," Ahok said during a discussion at the 2020 International Convention on Indonesian Upstream Oil and Gas, last week. "It also has long-term offtake," the former Jakarta governor remarked.