PTBA - PT. Bukit Asam Tbk

Rp 2.800

-40 (-1,43%)

JAKARTA. PT Bukit Asam Tbk (PTBA) has signed a strategic partnership agreement for the downstreaming of coal into dimethyl eter (DME) with PT Pertamina (Persero) and Air Products & Chemicals Inc (APC).

According to Energy and Mineral Resources Minister Arifin Tasrif, collaboration between the three companies can result in substitution of LPG for household users, which in turn can lower LPG import, which amounts to 70% of the national supply.

"This is a milestone in the national coal downstreaming effort," Mr Tasrif said in a press release received by IDNFinancials.com. "Going forward, it is expected that the technology can be used efficiently to produce competitive DME products as substitutes for LPG."

The strategic collaboration includes a number of principles applicable for PTBA, Pertamina, and APC, and is in line with the government's strategy to make the most of the country's coal surplus, which is expected to suffice for the next 60 years.

At the end of August this year, the three companies announced a target to commence the construction of a coal gasification facility by 2021. APC is acting as an investor in the US$2.1 billion project. (KR/MS)