JAKARTA, July 31 (Xinhua) — The Indonesian government has established special economic zones (SEZs) to accelerate the conversion of coal into dimethyl ether (DME), Coordinating Minister for Economic Affairs Airlangga Hartarto said here on Thursday.
Through the SEZs, the government is offering tax incentives, import duty exemptions, and support in licensing and labor. Additional facilities for capital expenditure, particularly for machinery procurement, are also available.
“The law is ready, and the government is providing SEZ facilities,” Airlangga said, noting that state oil and gas company PT Pertamina will serve as the offtaker for these projects.
“This is important. We have already granted SEZ status to several coal gasification projects producing dimethyl ether,” he said at the Indonesian Mining Forum 2025.
With these incentives, the government expects DME production from coal gasification to begin within the next two to three years. The initiative is aimed at boosting clean energy use and reducing dependence on imported gas. ■