Jakarta (ANTARA) - President Joko Widodo officially commenced the groundbreaking for the project for downstreaming coal products into dimethyl ether in Muara Enim District, South Sumatra, Monday, that is expected to reduce dependence on Liquid Petroleum Gas.
"Thank God, despite being delayed since long, today, we can start the groundbreaking ceremony for the project of downstreaming coal into DME," the president noted in Muara Enim, South Sumatra, as quoted on Monday.
The president spoke of having constantly emphasized the importance of downstream projects and industrialization of natural resources, so that Indonesia could reduce imports.
The downstreaming of coal to DME was expected to reduce the state's imports of LPG valued at some Rp80 trillion.
“We have the raw material, i.e. coal, which (can be) converted into DME. It is almost similar to LPG. I have seen DME being used as cooking fuel akin to LPG for the same purpose,” he elaborated.
The head of state explained that annually, the imports of LPG reached Rp80 trillion from the requirement of Rp100 trillion. The government must also disburse subsidies of up to Rp60-70 trillion, so that imports could be utilized by the public.
"Are we going to keep this up? To always import?” the president questioned rhetorically.
The president encouraged the application of programs that downstream the state's natural resources in order to produce value-added products that could replace semi-finished materials or finished goods imported from overseas.
Widodo claimed that if it could be achieved, then that alone could reduce the state budget spending for subsidy by Rp7 trillion.
Should the imports continue to be reduced, the balance of goods and services recorded in the current account balance will continue to improve. Hence, the coal downstream project was expected to reduce gas imports.
Other attendees at the event comprised Cabinet Secretary Pramono Anung, State-Owned Enterprises Minister Erick Thohir, Investment Minister Bahlil Lahadalia, Energy and Mineral Resources Ministry Arifin Tasrif, Head of the Board of Commissioners at Financial Services Authority Wimboh Santoso, and related stakeholders.
"Thank God, despite being delayed since long, today, we can start the groundbreaking ceremony for the project of downstreaming coal into DME," the president noted in Muara Enim, South Sumatra, as quoted on Monday.
The president spoke of having constantly emphasized the importance of downstream projects and industrialization of natural resources, so that Indonesia could reduce imports.
The downstreaming of coal to DME was expected to reduce the state's imports of LPG valued at some Rp80 trillion.
“We have the raw material, i.e. coal, which (can be) converted into DME. It is almost similar to LPG. I have seen DME being used as cooking fuel akin to LPG for the same purpose,” he elaborated.
The head of state explained that annually, the imports of LPG reached Rp80 trillion from the requirement of Rp100 trillion. The government must also disburse subsidies of up to Rp60-70 trillion, so that imports could be utilized by the public.
"Are we going to keep this up? To always import?” the president questioned rhetorically.
The president encouraged the application of programs that downstream the state's natural resources in order to produce value-added products that could replace semi-finished materials or finished goods imported from overseas.
Widodo claimed that if it could be achieved, then that alone could reduce the state budget spending for subsidy by Rp7 trillion.
Should the imports continue to be reduced, the balance of goods and services recorded in the current account balance will continue to improve. Hence, the coal downstream project was expected to reduce gas imports.
Other attendees at the event comprised Cabinet Secretary Pramono Anung, State-Owned Enterprises Minister Erick Thohir, Investment Minister Bahlil Lahadalia, Energy and Mineral Resources Ministry Arifin Tasrif, Head of the Board of Commissioners at Financial Services Authority Wimboh Santoso, and related stakeholders.