Insight

Can Coal-to-DME Replace LPG Imports?

market-avatar

Algo Research Team

Industry | May 01, 2026 | Views: 165

The content provided here is for informational purpose only. It is not an advise or recommendation. Please do your own research.
content-img

Key Summary:

  • Coal to DME offers potential gas import substitution
  • Indonesia could leverage its abundant coal reserves
  • Initial DME projects could involve PTBA and Pertamina

The Indonesian government plans to initiate coal downstreaming projects to produce dimethyl ether (DME), partly aimed at reducing reliance on imported liquefied petroleum gas (LPG) to diversify the country’s supply chain in the energy sector.


A shift from LPG? Indonesian LPG market is in a significant deficit with total domestic sales of 8.9 million tons far exceed national production amounting to only 1.96 million ton in 2024.

How was our research?

DISCLAIMER: Algo is an independent research platform and is not affiliated with any financial institution. We are not a licensed securities dealer, financial advisor, broker, or investment bank. The contents shared across our website, and social media platforms are intended for informational purposes only and reflect our views and opinions. It is not meant to be construed as financial advice and/or a recommendation to buy or sell an asset. Past performance does not guarantee future results. As a research platform, our contents are made to provide data-driven information and research-based articles, and should not be used as a basis for making any investment decisions. We strongly encourage you to conduct your own research and consult with a licensed financial advisor before making any investment decisions. Algo is not regulated by OJK (Otoritas Jasa Keuangan) and does not provide any investment services. We are not responsible for any financial decisions you make based on the information provided. All content is presented with the intent of informing only.