Danantara to break ground on coal-to-DME project soon

Indonesia’s sovereign wealth fund Danantara Indonesia will hold the groundbreaking ceremony for its coal gasification project to produce dimethyl ether (DME) on February 6, 2026.

Danantara Indonesia Chief Executive Officer Rosan Roeslani announced the plan after a working meeting with House of Representatives (DPR RI) Commission XII in Jakarta on Tuesday.

“Six downstream projects are scheduled to break ground on the 6th—planned for February 6,” Rosan told reporters.

Rosan, who also serves as Minister of Investment and Head of the Investment Coordinating Board (BKPM), did not disclose details on foreign investors involved in the project. However, he confirmed that Chinese investors are among the partners and that Danantara will participate directly.

“Yes, [investors are] from China, and Danantara as well,” he said.

Read also: Indonesia to break ground on coal-to-DME project in February

Previously, Danantara Chief Operating Officer Dony Oskaria said the coal-to-DME project was expected to begin construction in early February 2026. He said the project, which aims to substitute liquefied petroleum gas (LPG), will be developed by state-owned coal miner PT Bukit Asam Tbk (PTBA).

Dony said the DME project is critical to reducing Indonesia’s dependence on LPG imports. The Ministry of Energy and Mineral Resources (ESDM) estimates national LPG consumption will reach 10 million metric tons in 2026, while domestic production is currently only about 1.3–1.4 million tons.

“What’s the impact? First, foreign exchange will no longer flow out for LPG imports. Second, subsidies can be reduced so the funds can be redirected to more productive uses,” Dony said.

Editing by Reiner Simanjuntak