Jakarta – A partnership between IndonesiaS state-owned energy and mining giants,PT Pertamina and MIND ID,aims to substantially reduce the nation’s reliance on imported Liquefied Petroleum Gas (LPG) through the conversion of domestic coal resources. The agreement, signed January 9, 2026, will leverage coal gasification technology to produce alternative energy sources like DME and SNG, addressing a projected shortfall of LPG supply as national consumption is expected to reach 10 million metric tons this year.This collaboration marks a key step in Indonesia’s pursuit of energy independence and diversification.
Jakarta –
Indonesian state-owned energy company PT Pertamina (Persero) and mining holding company MIND ID have entered into a strategic partnership to accelerate the conversion of coal into alternative energy sources, aiming to reduce the country’s reliance on imported Liquefied Petroleum Gas (LPG). The collaboration, formalized through a signing ceremony on January 9, 2026, marks a significant step towards Indonesia’s energy independence.
Pertamina’s CEO, Simon Aloysius Mantiri, hailed the agreement as a landmark achievement for Indonesia’s energy sovereignty. “As the backbone of the national energy sector, we are committed to optimizing Pertamina’s distribution infrastructure to support this conversion process in collaboration with MIND ID,” Mantiri stated in an official release on Saturday, January 10, 2026. “This is a concrete step towards reducing our dependence on LPG imports and ensuring more affordable energy access for the people, aligning with the government’s self-sufficiency targets.”
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MIND ID’s CEO, Maroef Sjamsoeddin, emphasized that the partnership is integral to strengthening the national industrial structure through the development of domestic mineral, coal, and energy value chains. “Through collaboration with Pertamina, MIND ID is committed to driving a conversion process that delivers economic added value, reduces import dependence, enhances competitiveness, creates new jobs, and strengthens national energy resilience in the long term,” Sjamsoeddin said.
Indonesia’s Ministry of Energy and Mineral Resources (ESDM) projects national LPG consumption to reach 10 million metric tons (MT) in 2026, while domestic production is currently estimated at only 1.3-1.4 million MT. This widening gap underscores the urgency of alternative energy solutions.
Sigit P. Santosa, Chief Technology Officer of Danantara Indonesia, noted that the collaboration between Pertamina and MIND ID reflects an integrated approach to developing the national energy system. “As a large nation, Indonesia urgently needs energy diversification to support its development,” Santosa explained. “Collaboration and synergy between strategic state-owned enterprises can strengthen the foundation of national energy. Technology-based conversion is a crucial instrument for optimizing the utilization of domestic resources while building a more resilient, efficient, and long-term-oriented energy system.”
The initiative demonstrates the proactive role of collaboration between state-owned energy and mining companies in fulfilling the government’s mandate to support conversion and industrialization through the utilization of coal gasification technology.
The conversion process will utilize gasification technology to transform coal into Synthetic Natural Gas (SNG), which will then be purified and dehydrated into Dimethyl Ether (DME) as an alternative energy source to replace LPG.
Pertamina will serve as the offtaker and aggregator of distribution infrastructure in this collaboration. Leveraging its extensive distribution network, Pertamina will ensure the effective absorption and distribution of coal conversion products, such as Dimethyl Ether (DME), Synthetic Natural Gas (SNG), and methanol, to both the public and industry as a substitute for imported energy sources.
(fdl/fdl)
