Indonesia: Coal miner PTBA needs US$5.8b to finance downstream projects

State-owned coal miner PT Bukit Asam (PTBA) has said it needs about US$5.8 billion to finance downstream projects in Muara Enim, South Sumatra, and Peranap, Riau, to convert solid coal into gas and other products. PTBA president director Arviyan Arifin said in Jakarta on Monday that the company was still calculating the investment value of the two projects with the hope that investors would be interested in the projects. “Our estimation is that the Penarap project needs $2.7 billion and Tanjung Enim $3.1 billion. The latter project is more expensive because it will offer a variety of products,” he said as quoted by

Among the products that will be manufactured at the Tanjung Enim project include syngas for the feedstock of fertilizers, polypropylene for raw plastic material and dimethyl ether (DME), which can be used as a substitute for liquefied petroleum gas. Arviyan said for project in Tanjung Enin, PTBA had signed heads of agreement with three companies — state-owned fertilizer producer PT Pupuk Indonesia, state-owned oil and gas holding company Pertamina and chemical producer PT Chandra Asri Petrochemical. Meanwhile, for the Peranap downstream project, PTBA would convert low calorie coal into DME. The company is cooperating with Pertamina, which will act as the offtakers of the project.