Indonesia pushes coal-to-fuel projects in East Kalimantan and South Sumatra

Deputy Minister of Energy and Mineral Resources Yuliot told reporters in Jakarta that construction has started on a coal-gasification facility at the Batuta Chemical Industrial Park in East Kutai, East Kalimantan, which will convert coal into methanol for synthetic fuel blending. He added that the government is preparing comparable projects in South Sumatra and other coal-rich regions. The effort aligns with President Prabowo Subianto’s recent remarks on achieving energy and food self-sufficiency, including plans to produce gasoline from domestic coal after successful palm-oil fuel trials.

Energy Minister Bahlil Lahadalia confirmed the ministry’s readiness to act on every presidential order to boost energy security using local resources. The ministry highlighted that coal-to-liquid technology is already proven internationally, citing Germany’s historic use and South Africa’s Sasol operations that produce about 300,000 barrels per day.