Construction of Indonesia’s first coal-to-methanol conversion plant is moving forward in the Bengalon area of East Kutai, East Kalimantan Province. Project developer PT Bumi Etam Chemical announced on July 29 that it had signed a FEED (Front-End Engineering Design) and EPCC (Engineering, Procurement, Construction and Commissioning) framework agreement with China’s CNCEC (China National Chemical Engineering).
PT Bumi Etam Chemical is reportedly a joint venture between Arutmin and KPC, both subsidiaries of Indonesian coal company Bumi Resources (BUMI). PT Istana Karang Laut (IKL) is also participating in the project, with China’s CNCEC handling EPCC. The plant is described as the first coal-to-methanol conversion project under the Indonesian government’s coal downstream-processing policy. The original report did not specify the process technology or licensor.
- Total investment: $2.3 billion (about KRW 3.17 trillion)
- Methanol production capacity: 2 million tonnes per year
- Low-rank coal consumption: 7.78 million tonnes per year
- Contract signing date: July 29, 2026
- Participants: PT Bumi Etam Chemical, PT Istana Karang Laut (IKL), China’s CNCEC