RI, Japan will build coal-based synthetic oil plant

The Indonesian government will build a liquefied coal plant in cooperation with the Japanese government as part of a pilot project to develop coal into synthetic oil, Bisnis Indonesia reported on Friday.

"The plant which would have a processing capacity of one ton per day is now under a feasibility study," said Minister of Energy and Mineral Resources Purnomo Yusgiantoro said. "We hope the plant will be able to begin operation in 2008," he added.

He said that by the year 2009, Indonesia should have a coal liquefied coal plant with a capacity of at least 3,000 tons a day that could be operated comercially. "By 2025, we are targeting to build at least seven plants each with a capacity of 6,000 tons per day," he added.

Purnomo said that the government would also introduce a policy that could encourage the production of coal-based synthetic oil in the country. He added that the clear-cut policy on the development of the coal into liquid was quite important to further reduce Indonesia's reliance on oil. (*)