PT Bukit Asam Tbk (PTBA) has provided clarification regarding the ultimatum issued by the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia, who threatened to take part of the company's mining business permit (WIUP) area if the coal gasification project into dimethyl ether (DME) is not continued.PTBA Corporate Secretary, Niko Chandra emphasized that the coal downstream project, including DME, is part of the government's efforts to increase the added value of natural resources and national energy security. Niko said that the government is encouraging all mining sectors to play an active role in the downstream program."PTBA as one of the largest coal mining companies in Indonesia has an important role in supporting the downstream program to provide greater benefits to the community and the nation," said Niko when contacted, Friday (9/5/2025).However, Niko was reluctant to confirm whether PTBA was still required to continue the coal gasification project into DME as requested by the government.Previously, ESDM Minister Bahlil Lahadalia threatened to take part of PTBA's WIUP if the state-owned company did not comply with government directives to carry out coal downstream projects."Later we will give them tasks, if they do not [carry out] the tasks, we will take some of their territory," said Bahlil when met at the Ministry of Energy and Mineral Resources, Thursday (8/5/2025).Bahlil also emphasized that the decision regarding coal downstreaming into DME is entirely under the Downstream Task Force and the Minister of Investment and Downstream. PTBA, said Bahlil, is not a regulator in this case and must comply with the direction of the government task force.The Director General of Minerals and coal at the Ministry of Energy and Mineral Resources, Tri Winarno, also clarified that the obligation to downstream coal only applies to companies holding Special Mining Business Permits (IUPK), not to companies with Mining Business Permits (IUP) such as PTBA.Tri explained that PTBA has no obligation to carry out coal downstreaming because the permit it holds is not an IUPK."If PTBA is an IUP, it has no obligations whatsoever. But if for example it wants to build, please go ahead," said Tri in a meeting with Commission XII of the DPR, Tuesday (6/5/2025).Currently, there are seven companies that are required to implement coal downstreaming, namely PT Arutmin Indonesia, PT Kaltim Prima coal, PT Adaro Indonesia, PT Kideco Jaya Agung, PT Multi Harapan Utama, PT Tanito Harum, and PT Berau coal. The downstreaming projects run by these companies include the production of DME, methanol, ammonia, urea electricity, and semicoke.
Source https://djakarta-miningclub.com