Indonesian President Joko Widodo has announced that his government is to launch a $2.3 billion coal gasification project soon.
The project aims to improve downstream industries of coal mining, increase its value, and reduce LPG (Liquified Petroleum Gas) imports. The cost of LPG imports stood at $5.4 billion in 2021.
The country can stop LPG imports from 2030. The facility will produce DME (dimethyl ether), a substitute for LPG once completed. Indonesia imports 80% of LPG (7.95 million tons) for its needs and is the fourth largest LPG importer in Asia.
It wants to reduce the costly LPG imports which took up $3.6 billion in subsidies. This expenditure comes after a plan to further develop its pipeline network to supply LPG to households across the country.
The coal gasificati...
