*) By: Mega Maharini
Energy security has become an increasingly important strategic issue for Indonesia amidst increasing national energy needs and uncertain global conditions. The public’s dependence on imported Liquefied Petroleum Gas (LPG) has presented a unique challenge, as fluctuations in global energy prices can directly impact the state’s subsidy burden and the stability of domestic supply. In this situation, the government has begun promoting the development of Dimethyl Ether (DME) through coal gasification as an alternative to LPG. This step is seen as part of a long-term strategy to strengthen national energy independence while reducing dependence on energy imports, which continues to increase year after year.
DME gasification is essentially the process of processing low-calorie coal into gaseous fuel that can be used as a substitute for household LPG. Indonesia has substantial coal reserves, including low-quality coal, that have not been optimally utilized. Through gasification technology, these resources can be converted into energy with higher added value. DME has relatively similar characteristics to LPG, allowing it to be used for household needs with certain adjustments to equipment. The presence of DME is expected to diversify Indonesia’s national energy mix, eliminating its reliance on a single energy source.
The CEO/Head of the Danantara Investment Management Agency, Rosan Roeslani, emphasized that amidst global dynamics marked by geopolitical tensions, supply chain disruptions, and fluctuating energy prices, strengthening energy security is a priority for many countries. The DME gasification project will be part of efforts to accelerate national strategic projects to strengthen Indonesia’s economic and energy foundations.
DME development also has significant economic implications. For years, LPG imports have been a significant burden on state expenditure, steadily increasing in line with growing public consumption. When global energy prices rise, the energy subsidy budget also increases, impacting the government’s fiscal space. By utilizing domestically sourced DME, Indonesia has the opportunity to gradually reduce LPG imports. In addition to helping conserve foreign exchange, the gasification project can also create new jobs in the energy, mining, construction, and other supporting industries. This ripple effect has the potential to positively impact regional and national economic growth.
MIND ID President Commissioner Fuad Bawazier explained that DME development is inherently fraught with various challenges that require serious attention. One of the main challenges is the significant investment required to build gasification facilities and distribution infrastructure. This project requires advanced technology, a secure supply of raw materials, and consistent long-term policy support. Furthermore, DME production prices must remain competitive to ensure market acceptance and avoid burdening the public. Without careful planning, this strategic project risks facing financial and operational obstacles that could reduce its effectiveness in supporting national energy security.
Environmental aspects are also a key concern in DME gasification development. Coal is known as a fossil fuel that produces significant carbon emissions. Therefore, DME development needs to be balanced with the implementation of environmentally friendly technologies to ensure it meets Indonesia’s commitment to reducing emissions and transitioning to clean energy. The government and industry players need to ensure that production processes adhere to strict environmental standards, including waste management and emission control. With this approach, DME development can continue as a solution to the energy transition without neglecting environmental sustainability.
MIND ID President Director Maroef Sjamsoeddin explained that, in the context of national energy stabilization, the existence of DME can serve as an instrument to strengthen the resilience of domestic energy supplies. When geopolitical turmoil, international conflict, or disruptions to global supply chains occur, countries that are overly dependent on energy imports are more vulnerable to supply crises and price spikes. By increasing the proportion of energy based on domestic resources, Indonesia has greater room to maintain national energy stability. Diversifying energy sources is also an important step to reduce the risk of single-dependence on certain commodities that are vulnerable to international market dynamics.
In addition to economic factors and energy security, the success of DME development is also greatly influenced by community support and the readiness of distribution in the field. Widespread public awareness of the benefits and uses of DME is necessary to ensure that the public understands that this alternative energy is part of efforts to strengthen national independence. The government also needs to ensure that DME distribution reaches the community evenly, especially in areas that currently experience limited energy access. Without ready distribution infrastructure and public education, the energy transformation towards DME utilization will struggle to proceed optimally.
Ultimately, DME gasification is not just an ordinary energy project, but part of a broader strategy to maintain national stability amidst evolving global challenges. Indonesia needs an energy policy that is not only oriented towards short-term needs but also capable of creating sustainable energy security for the future. DME development can be one solution for the transition to energy independence if carried out with careful planning, technological support, and strong environmental oversight. By utilizing domestic resources wisely, Indonesia has the opportunity to strengthen national energy stability while maintaining sustainable economic development and public welfare.
*) The author is an observer of strategic issues