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Bukit Asam coal gasification plant to receive Indonesian incentives

December 01, 2020

The Jakarta Post:

State-owned coal miner PT Bukit Asam’s US$2 billion flagship coal gasification project has been added to the national strategic projects list as the government continues to pursue the development of a downstream mining industry. Bukit Asam’s project, a potentially loss-making enterprise that converts coal into a type of cooking gas called dimethyl ether, is now eligible for a land and building acquisition tax waiver and less red tape, among other incentives.

Energy finance analyst Ghee Peh, in a recent study, found that producing and selling dimethyl ether would cost Bukit Asam $377 million in operational losses each year. “Technical viability is not the same as economic viability. The DME [dimethyl ether] project doesn’t make economic sense,” wrote Peh, a researcher with the Institute for Energy Economics and Financial Analysis (IEEFA).

[Norman Harsono]

More: Govt grants incentives to Bukit Asam’s coal gasification project

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