How Indonesia Plans to Turn Coal into Gasoline - Tempo.co English
TEMPO.CO, Jakarta - Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia stated that the government will follow up on President Prabowo Subianto's initiative to process coal into fuel, including gasoline.
According to Bahlil, several companies have already proposed joint ventures to develop the technology.
"Technology has now advanced to the point where low-calorie coal can produce gas and oil. So, we will continue to follow up on what the President has said," said Bahlil after attending a blood donation drive commemorating the 81st anniversary of the Ministry of Energy and Mineral Resources in Jakarta on Monday, September 21, 2026.
Bahlil noted that coal-to-gas processing technology is already operational in several nations, including China. He highlighted that Indonesia holds vast reserves of low-calorie coal ripe for conversion into alternative fuels.
"Several companies have already made offers to collaborate with us," he added.
He explained that developing coal-derived fuels is a part of national efforts to optimize domestic energy resources. The initiative is designed to curb reliance on imported crude oil, thereby conserving foreign exchange reserves.
"As Energy Minister, I will follow up on every presidential directive on resource optimization to enhance energy resilience through domestic energy sources," Bahlil affirmed.
Earlier, President Prabowo Subianto unveiled the government's plan to synthesize gasoline from coal to reduce Indonesia's dependence on imported oil.
Prabowo pointed out that parallel efforts to derive fuel from domestic commodities are already underway using palm oil. He noted that engineering professors across Indonesian universities have successfully formulated crude palm oil (CPO)-based substitutes for both diesel and gasoline.
“Professors from our engineering faculties have successfully produced diesel from palm oil and managed to synthesize gasoline from it. Later, we will also produce gasoline from coal,” Prabowo said while attending the centennial celebration of the Darussalam Gontor Islamic Boarding School in East Java on Saturday, September 19, 2026, as quoted from the Gontor TV YouTube channel.
