Indonesia is accelerating coal gasification to shield its economy from volatile global fuel and Liquefied Petroleum Gas (LPG) import costs. By converting abundant low-rank coal into dimethyl ether (DME)—a synthetic cooking gas—Jakarta aims to curb dependency on foreign LPG and reduce import-related government spending.

Indonesia is accelerating coal gasification to shield its economy from volatile global fuel and Liquefied Petroleum Gas (LPG) import costs. By converting abundant low-rank coal into dimethyl ether (DME)—a synthetic cooking gas—Jakarta aims to curb dependency on foreign LPG and reduce import-related government spending. 

Key Drivers and Initiatives:
The Problem: -
Middle East crises and global supply disruptions have spiked diesel and LPG prices, leaving Indonesian supply chains and fishing fleets vulnerable.
The Solution: -
Producing 1.4 million tons of DME annually could replace 1 million tons of imported LPG, saving the state significant capital.
Investment & Technology: -
Indonesia is securing foreign investment and technology transfers (notably from China) to push these downstream processing projects forward.
Funding: -
Sovereign wealth funds, including the Danantara sovereign wealth fund, are being tapped to finance these domestic production plants. 
Economic and Environmental Concerns:-
Viability: -
Projects have faced delays due to high operating costs and questions about economic viability without massive government subsidies.
Emissions & Pledges: -
Critics argue that gasification prolongs the life of fossil fuels and contradicts climate targets—such as Indonesia's commitment to net-zero emissions by 2050. ?
MJF Lion ER YK Sharma 

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