Indonesia's Bumi Etam Chemical coal-to-methanol project to produce 2 Mt annually by 2030

PT Bumi Etam Chemical (BEC), a joint venture of PT Kaltim Prima Coal, PT Arutmin Indonesia and PT Bumi Etam, will convert low‑calorie coal (about 3,300 kcal/kg) into methanol at a new plant in East Kalimantan. The first phase is designed to consume roughly 7.7 million tonnes of coal per year and generate up to 2 million tonnes of methanol annually.

The project, located in Batuta Chemical Industrial Park on the edge of the Makassar Strait, targets commissioning in 2029 and full commercial operation by 2030. Estimated investment exceeds US$2.3 billion and includes integrated power generation, water‑treatment facilities and a sulfuric‑acid by‑product line. Methanol output will meet European IMPCO standards rather than Chinese specifications. The Indonesian Ministry of Economy has classified the venture as a strategic national project under the 2020 coal‑downstreaming law.