PT Kideco Jaya Agung, a subsidiary of PT Indika Energy Tbk (INDY), has set a capital expenditure (capex) of USD 257.4 million for its coal gasification project.

According to Ricky Fernando, Head of Corporate Communications, Kideco has submitted a coal development plan as a condition for extending its PKP2B license to IUPK. PT Kideco Jaya Agung's Coal Development Plan was approved through UCG technology in January 2022.

He explained that the value-added product produced is in the form of PLTMG electricity, which is planned to operate in 2029 and has a power of 6 MW.

In addition to PLTMG, another product is ammonia urea which is planned to start operating in 2031 with a capacity of 100 thousand tons of ammonia per year or 172 thousand tons of urea per year.

"The process currently being carried out by Kideco to achieve the UCG realization target in 2029 and 2031 is environmental licensing which is currently still in the preparation stage," Ricky told KONTAN, Monday (24/6).

Kontan's records show that the Ministry of Energy and Mineral Resources (ESDM) has approved PT Kideco Jaya Agung's coal downstream project. INDY's subsidiary will have a value-added product (PNT) capacity of 100,000 tons per year for ammonia and 172,000 tons per year for urea.