Enviro News Asia, Jakarta — State-owned energy company PT Pertamina (Persero) and mining holding company MIND ID have strengthened a strategic partnership to support Indonesia’s national energy resilience agenda under President Prabowo Subianto’s Asta Cita vision.
The collaboration focuses on accelerating coal downstreaming through gasification technology to produce alternative energy products that can substitute imported liquefied petroleum gas (LPG). Through this process, coal is converted into Synthetic Natural Gas (SNG) and further refined and dehydrated into Dimethyl Ether (DME), which can be used as an LPG substitute.
The strategic cooperation was formalized through the signing of an agreement on Friday, January 9, 2026, and was witnessed by Chief Technology Officer of Danantara Indonesia, Sigit Puji Santoso, in Jakarta.
The initiative reflects the government’s mandate for state-owned enterprises in the energy and mining sectors to support downstream industrialization and strengthen domestic value chains through technology-based resource utilization.
Sigit Puji Santoso stated that the partnership demonstrates an integrated approach to developing Indonesia’s national energy system, emphasizing the importance of diversification to support long-term economic growth.
“Synergy among strategic state-owned enterprises strengthens the foundation of national energy security. Technology-based downstreaming allows Indonesia to optimize domestic resources while building a more resilient and efficient energy system,” he said.
Under the collaboration, Pertamina will act as the offtaker and infrastructure distribution aggregator. Leveraging its nationwide distribution network, the company will ensure that downstream products such as DME, SNG, and methanol are effectively absorbed and distributed to households and industries as substitutes for imported energy sources.
Pertamina President Director Simon Aloysius Mantiri described the partnership as a milestone in Indonesia’s pursuit of energy sovereignty.
“As the backbone of the national energy sector, Pertamina is committed to optimizing its distribution infrastructure to support coal downstreaming in collaboration with MIND ID. This initiative directly reduces reliance on LPG imports and ensures more affordable energy for the public,” he said.
Meanwhile, MIND ID President Director Maroef Sjamsoeddin emphasized that the cooperation forms part of broader efforts to strengthen Indonesia’s industrial structure by developing domestic mineral, coal, and energy value chains.
“Downstreaming creates economic value, reduces import dependency, enhances competitiveness, generates employment, and reinforces long-term national energy resilience,” he said.
According to the Ministry of Energy and Mineral Resources, Indonesia’s LPG consumption is projected to reach 10 million metric tons in 2026, while domestic production currently stands at only 1.3–1.4 million metric tons.
The Pertamina–MIND ID synergy through coal-to-DME and coal-to-SNG projects is expected to help bridge this gap by utilizing domestic coal resources, supporting energy independence while aligning with Indonesia’s commitment to sustainable development and its Net Zero Emissions 2060 target. (*)
