No foreign investment interest in Indonesia’s DME project

The Ministry of Investment (BKPM) has acknowledged that thus far, there is currently no foreign investor interest in the country's dimethyl ether (DME) project, which aims to convert coal into a substitute for LPG. Despite the government’s enthusiasm, no clear commitment has been made by any foreign companies to invest in the project, which is seen as a potential solution to reduce Indonesia’s reliance on LPG imports and boost energy independence.

Nurul Ichwan, Deputy for Investment Promotion at the Ministry of Investment, confirmed on Tuesday, October 7, that no foreign investors had officially committed to the DME project. “We have not heard of any specific companies that have shown clear interest in entering Indonesia for the DME project,” Nurul stated during an event in South Jakarta as quoted by the media.

Read also: Ministry orders PTBA to resume DME project

The DME project holds significant importance for Indonesia, given the country’s vast coal reserves and the potential to substitute some of its imported gas with domestically produced DME. However, despite these opportunities, foreign investors have yet to make concrete commitments. Nurul explained that the government tracks only those investments that have obtained an official business license (NIB) to ensure transparency and accuracy in data on foreign investments.

Previously, Air Products, a U.S.-based company, decided to withdraw from a partnership with PT Bukit Asam (PTBA) on the DME project in 2023

Editing by Alexander Ginting