PT Bumi Resources Tbk. (BUMI) will develop a coal gasification project in Indonesia. Reportedly, the Bakrie group company is collaborating with new partners from China to develop the downstream project.

Bumi Resources Director Dileep Srivastava said that the company is currently still discussing with various parties to work on downstream projects. So, the company cannot reveal the details before the agreement is finalized.

"So, at this time, we cannot reveal the name (company) or details," he said at the Bakrie Tower building, Jakarta, Wednesday (6/12).

Dileep said that the company is open to collaborating with any party interested in working on downstream projects effectively and efficiently. "We are open to collaboration and we are looking for the most efficient and cost-effective partners we can get," he said.

Dileep added, in selecting business partners, the company will consider various aspects. Among them, technology, renewal and green funding. "So, we will look at these three factors," he said.

Apart from that, BUMI will also look at the potential benefits from incentives provided by the government to work on projects that are different from other projects.

"We will also look at the potential benefits and what government policies are regarding incentives to encourage the shift to renewable energy," he concluded.

For information, some time ago the President Director of PT Bumi Resources Tbk (BUMI) Adika Nuraga Bakrie said that there would be investors who would work on downstream projects with BUMI.

According to him, with the joining of partners from China, the coal downstream project carried out by subsidiaries namely PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia has changed to ammonia.

Previously, these two subsidiaries planned to develop downstream coal products into methanol. According to Adika, changes to downstream products were made by considering several factors. One of them is the market.

"Market considerations and also perhaps if we can use 1/3 of our own ammonia capacity for ammonia nitrate, that is one consideration and is more about the market," he said when met after the Jakarta Energy Forum 2023 event, Wednesday (31/5/2023).

However, Adika was reluctant to reveal more details about the potential partners in question. He also targets the groundbreaking of his coal downstream project in early 2024. "Later we will announce the name when the time is right," he said.

Image source: CNBC Indonesia/Firda Dwi Muliawati

Source: www.cnbcindonesia.com/Garap Hilirisasi, Bumi Resources (BUMI) Gandeng Pemodal China