PT Bukit Asam Tbk (ptba) has reaffirmed its commitment to driving coal downstreaming as part of its transformation into a world-class energy company.President Director of ptba, Arsal Ismail, stated that the downstreaming program currently being implemented is a strategic step to increase added value. Through this initiative, ptba supports the implementation of the government's agenda in strengthening national energy and food security."Through this downstreaming, we are committed to supporting the implementation of the government's Asta Cita, particularly in strengthening national energy and food security," Arsal said during a Hearing (RDP) with Commission XII of the Indonesian House of Representatives (DPR RI), Monday (13/4/2026).Arsal detailed that one of the projects under development is the Coal-to-Synthetic Natural Gas (SNG) project. This project is aimed at providing an alternative gas supply, specifically for the South Sumatra to West Java regions.In its development plan, the SNG project requires approximately 9 million tons of coal and is targeted to produce a capacity of 237 BBTUD.Under the development scheme, ptba will form a joint venture with PT Perusahaan Gas Negara Tbk (PGN), which will also serve as the 100% off-taker for the produced SNG."Economically, this SNG product will be able to provide an added value of up to 5.7 times compared to the sale of raw coal," Arsal remarked.In addition to SNG, ptba is also developing a Coal-to-Dimethyl Ether (DME) downstream project as a substitute for imported LPG. This project is targeted to have a capacity of approximately 1.4 million tons and is expected to provide an added value of up to 4.3 times.In its implementation, ptba will act as the plant operator as well as the coal supplier, while Pertamina will serve as the off-taker that absorbs the entire DME production."This is still in progress; we are working with Danantara, and hopefully, the economics will eventually make ptba even better," he said.Furthermore, ptba is venturing into downstreaming to support food security through the development of potassium humate products. This product, a result of research collaboration with UPN, functions as a soil conditioner capable of improving soil fertility."As a commercialization stage, the construction of a factory with a capacity of 10,000 tons per year is planned. This product certainly offers a very significant added value, reaching up to 29 times compared to raw coal," he added.
Source https://djakarta-miningclub.com