Jakarta. Indonesia is moving ahead with an ambitious plan to replace liquefied petroleum gas (LPG) used for cooking with dimethyl ether (DME) produced from low-grade coal, as part of efforts to strengthen energy security and reduce import dependence.

Six coal gasification projects producing DME will be launched simultaneously later this week across East, North, and South Kalimantan, as well as South Sumatra, Investment Minister Rosan Roeslani said on Tuesday.

The projects are expected to require total investment of Rp 164 trillion ($9.8 billion) and generate around 34,800 jobs.

The DME initiative forms part of a broader downstream industrialization program covering 18 projects with a combined investment value of $38.6 billion. These include waste-to-energy facilities, a Smelter Grade Alumina Refinery (SGAR), sustainable aviation fuel production, a bioethanol plant in Banyuwangi, and projects across the agriculture, plantation, and maritime sectors.

Last month, President Prabowo Subianto reaffirmed coal gasification as a key priority of his administration, aimed at achieving energy self-sufficiency while reducing state spending on LPG imports and subsidies.

“We will produce DME that can replace the LPG we currently import from abroad,” Prabowo said.

Officials see the program as a critical step toward improving energy resilience and reducing Indonesia’s exposure to volatile global LPG prices.

Rosan said several investors have committed to backing the projects, including the country’s sovereign wealth fund, Danantara, where he also serves as chief executive officer.

Earlier, Energy and Mineral Resources Minister Bahlil Lahadalia said the coal-to-DME developments are among 18 projects that have completed pre-feasibility studies. The technology for the gasification plants is expected to be sourced from either China or Europe.

Bahlil underscored the urgency of domestic DME production, noting that Indonesia consumes about 8.5 million tons of LPG annually, while domestic production supplies only around 1.3 million tons. The shortfall forces the country to import roughly 7 million tons of LPG each year.

“This is why it has been difficult for us to build a domestic LPG industry,” Bahlil said, citing the limited suitability of Indonesia’s natural gas resources for LPG processing.

According to Bahlil, coal-based DME derived from low-calorie coal offers the most economically competitive alternative to LPG, with significantly lower prices while adding value to Indonesia’s domestic coal reserves.

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