Jakarta, APBI-ICMA: CNBC Indonesia March 11 2019 reported that PT Bukit Asam Tbk (PTBA) estimated the investment value for the construction of two coal downstream projects to be worked on reached US $ 5.8 billion (Rp. 81.20 trillion, assuming an exchange rate of Rp. 14,000 / US $). The investment value will be shared by the company and its working partners.
President Director of Bukit Asam Arviyan Arifin said the two projects are still undergoing the feasibility study process so far so that the investment value of the two is still in the form of estimates. It is unclear what portion of the ownership and investment of each company will be.
"For the projects in Peranap and Tanjung Enim the value of the investment is still in the form of estimates. In Peranap, the value is estimated at US $ 2.7 billion and in Tanjung Enim it is worth US $ 3.1 billion," Arviyan said at Fairmont Hotel, Jakarta, Monday (11 / 3).
Arviyan said that the investment will be funded with Acid Proof entirely from the company's internal cash.
The Peranap project is a gasification project that will be worked on by Bukit Asam together with PT Pertamina (Persero) with Air Products to downstream coal to DME. The three companies will later form a joint venture (JV).
The state-owned coal company will supply coal as much as five million metric tons of coal.
The target of factory construction will begin shortly after the company was formed with the target of Construction for 18-24 months. It is expected that the gas from this project will be commercialized in the upcoming 2021.
While the project in Tanjung Enim is a coal downstreaming plant together with Pertamina, PT Pupuk Indonesia, and PT Chandra Asri Petrochemicals Tbk (TPIA).
Later, coal from PTBA will be changed through gasification technology to produce final products that have added value. The coal will be converted into syngas which becomes the raw material for processing into Dimethyl Ether (DME) as fuel, urea as fertilizer, and Polypropylene as plastic raw material.