VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

State-owned oil and gas company PT Pertamina (Persero) has developed a coal gasification project to produce an alternative source of energy to curb the imports of liquefied natural gas (LNG) since Indonesia has copious resources.

"We are striving to reduce the import of fuel oil and LPG to optimize local natural resources as raw material for energy production. Thus, it could reduce imports and the deficit in trade balance. With abundant resources in Indonesia and supported by the right technology, the coal-to-dimethyl ether gasification project to replace LPG will not become an environmental issue in Indonesia. The key is on the choice of technology," Pertamina's President Director, Nicke Widyawati, stated here on Wednesday.

However, Widyawati stressed on the urgency to develop an apt technology for the program to lower environmental impacts.

The company has inked an agreement with Bomba Group through the latter's subsidiary PT Berkah Bomba Energi in order to gasify coal into dimethyl ether.

CEO of PT Berkah Bomba Energi Todotua Pasaribu echoed the company’s support to the government's efforts to lower dependence on LPG imports and develop energy resilience through diversification in the energy business.

"We are committed to developing the project in order to support regional development, especially in the southern Sumatra region," he stated.

Bomba Group has other business units in coal, plantation, power plant, and property in South Sumatra.

Director General of Coal of the Energy and Mineral Resources Ministry Ridwan Djamaluddin stated that the cooperation held strategic importance since Indonesia had abundant low-calorie coal resources.

"We are optimistic that the program would offer us a competitive advantage. We are also striving to attract more investment to create a multiplier effect," Djamaluddin remarked. (Antaranews)