Operated by BEC, a joint venture of PT Arutmin Indonesia and PT Kaltim Prima Coal (KPC), the site will process 7.70 to 7.78 million tonnes per year of low-calorific coal (3,400 kcal/kg) into IMPCA-grade industrial methanol.
The production configuration incorporates coal gasification trains, synthesis reactors, captive power units, water treatment infrastructure, dedicated port terminals, and integrated Carbon Capture and Storage (CCS) systems.
Downstream Supply for B50 Biodiesel and Petrochemicals
Advancing under an EPCC framework with PT Istana Karang Laut (IKL) and China National Chemical Engineering Co., Ltd. (CNCEC), the project is scheduled for commissioning in 2029.
Output will direct into domestic formaldehyde and petrochemical supply chains, as well as fatty acid methyl ester (FAME) blending under Indonesia’s B50 national biodiesel initiative.
Yuliot (Deputy Minister of Energy and Mineral Resources, Indonesia):
This project is part of our strategic roadmap to increase the added value of natural resources, strengthen domestic industry, reduce import dependence, and secure energy resilience. In 2025, Indonesia imported 1.3 million tonnes of methanol valued at IDR 7.1 trillion. We expect this facility to deliver broad multiplier effects through employment and local economic activity.
Rio Supin (President Director, PT Bumi Etam Chemical):
Indonesia's first coal gasification project has entered its execution phase following front-end engineering design. BEC is prepared to hit the 2029 commissioning target to support national energy independence.
