MIND ID and Pertamina team up on coal downstreaming projects
Saturday, January 10 2026 - 08:18 AM WIB
State-owned mining holding company MIND ID has partnered with state-owned oil and gas firm PT Pertamina (Persero) to strengthen cooperation aimed at boosting Indonesia’s energy resilience and self-reliance.
The collaboration focuses on accelerating coal downstreaming into alternative energy products, including Synthetic Natural Gas (SNG), Dimethyl Ether (DME) and methanol, by strengthening domestic mineral, coal and energy value chains.
Chief Technology Officer of sovereign wealth fund Danantara Indonesia, Sigit P. Santosa, said the partnership reflects an integrated approach to developing the national energy system.
“Collaboration and synergy among strategic state-owned enterprises can strengthen the foundation of national energy security. Technology-based downstreaming is a key instrument to optimize domestic resources while building a more resilient, efficient and long-term energy system,” Sigit said in a written statement on Friday.
The cooperation was formalized through the signing of an agreement between MIND ID and Pertamina, witnessed by Sigit and Danantara Managing Director of Industrialization Ardy Muawin on Friday.
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MIND ID President Director Maroef Sjamsoeddin said the partnership is part of efforts to strengthen Indonesia’s industrial structure through the development of domestic mineral, coal and energy value chains.
Through the collaboration, MIND ID aims to promote downstreaming that generates added economic value, reduces import dependence, enhances competitiveness, creates jobs and strengthens long-term energy security.
“MIND ID, through PT Bukit Asam Tbk, which will act as the coal supplier, together with Pertamina will oversee every stage of this cooperation until it is realized and its benefits can be felt nationwide,” Maroef said. Bukit Asam plans to convert coal into DME, which can be used as a substitute for imported liquefied petroleum gas (LPG).
Under the agreement, Pertamina will serve as the offtaker and aggregator of distribution infrastructure, leveraging its nationwide network to distribute downstream coal products such as DME, SNG and methanol. The collaboration is expected to help reduce Indonesia’s reliance on imported energy.
Pertamina President Director Simon Aloysius Mantiri said the partnership marks a milestone in strengthening Indonesia’s energy sovereignty.
“This is a concrete step toward reducing dependence on LPG imports and ensuring more affordable energy for the public, in line with the government’s energy self-sufficiency targets,” Simon said.
The Energy and Mineral Resources Ministry projects national LPG consumption to reach about 10 million metric tons in 2026, while domestic production currently stands at around 1.3–1.4 million metric tons.
Editing by Reiner Simanjuntak