Crisis Management for a Conflict with North Korea

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Danantara sebut DME perlu subsidi agar setara LPG

Danantara says DME needs subsidies to be on par with LPG

Antara News | Local Language | News | Dec. 12, 2025 | UndeterminedBudgets-Budgeting

Danantara Indonesia has stated that the coal downstreaming project to produce dimethyl ether (DME) fuel will require subsidies to ensure its price can compete with subsidized liquefied petroleum gas (LPG). Wiko Migantoro, Senior Director of Oil & Gas and Petrochemical at Danantara, emphasized that government support is crucial to make DME affordable and acceptable to the public. The company is finalizing a feasibility study for the DME project, which will be shared with the Downstreaming and Energy Resilience Task Force led by the Minister of Energy and Mineral Resources, Bahlil Lahadalia, to determine distribution and commercial strategies.

Minister Bahlil Lahadalia plans to decide the project location in December 2025, with construction expected to start in 2026. He stressed the urgency of the DME project in addressing Indonesia’s LPG import dependency. Indonesia’s LPG consumption in 2026 is projected at around 10 million metric tons, while domestic production capacity is only 1.3 to 1.4 million metric tons, resulting in an import gap of approximately 8.6 million metric tons. DME is seen as a strategic solution to reduce this import deficit and enhance energy resilience.

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