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Bukit Asam, Pupuk Indonesia, Chandra Asri to Develop Coal Gasification

JAKARTA ( – Coal producer PT Bukit Asam Tbk (IDX:PTBA) has signed a heads of agreement with fertilizer producer PT Pupuk Indonesia and PT Chandra Asri Petrochemical Tbk (IDX:TPIA) to develop coal gasification plant.
The HoA was signed by President Director of Bukit Asam Arviyan Arifin; President Director of
Pertamina, Elia Massa Manik;  President Director of Pupuk Indonesia, Aas Asikin Idat; and President Director of TPIA, Erwin Ciputra last Friday (Dec. 8).

Under the plan,  the coal will be developed into gas,  known as gasification process,  before further processed into value-added end products such as synthetic gas or syngas.

Syngas is a raw material to produce Dimethyl Ether (DME), gas fuel,  fertilizer as well as polypropylene as a raw material to produce plastics.

“Through this cooperation, fertilizer industry can utilize coal to produce gas and fertilizer,” said Aas Asikin Idat.

Erwin Ciputra added coal-based polypropylene will help Indonesia in meeting it’s domestic demand for polypropylene.  At present demand for polypropylene still could not be met domestically therefore Indonesia has to import.

After signing the HoA, the parties involved in the project will conduct feasibility study,  environmental assessment and financing and then moving on to selecting EPC (engineering procurement and construction).

At the same time, Bukit Adam will develop a Coal Based Industrial Estate in Tanjung Enim in South Sumatra.

The coal gasification project is targeted to be completed in November, 2022. It will have capacity to produce 500,000 tons of fertilizer per year,  400,000 tons of DME and 450,000 tons of polypropylene per annum.  (*)
By Roffie Kurniawan (roffie.kurniawan@gmail. com)

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