The Indonesian government plans to use dimethyl ether (DME) as an alternative energy source to replace liquified petroleum gas (LPG).
DME is a gas produced from coal processing, which can be used as fuel for household needs.
"This DME is a downstream product of low-calorie coal, with a much cheaper price compared to LPG," said Minister of Energy and Mineral Resources Bahlil Lahadalia, as reported by Katadata.co.id (27/10/2025).
According to Bahlil, the use of DME aims to reduce Indonesia's dependence on imported LPG.
He also stated that the downstream project, or the processing of coal into DME, will be carried out in stages starting in early 2026.
"Now the results of the study have been submitted to Danantara, and God willing, we can gradually execute it either at the beginning of the year or by the end of this year," Bahlil said.
Although claimed to be cheaper, greenhouse gas emissions from DME production are much higher than those from LPG.
This was revealed by the International Energy Agency (IEA) in its report, "An Energy Sector Roadmap to Net Zero Emissions in Indonesia" (2022).
According to the report, the process of coal gasification into DME produces emissions between 360 and 390 kilograms of carbon dioxide equivalent per gigajoule (kg CO2e/GJ).
Meanwhile, emissions from the imported LPG cycle only range between 75 and 90 kg CO2e/GJ.
The IEA also estimates that coal-to-DME production will still generate high emissions, even if equipped with carbon capture, utilization, and storage (CCUS) technology.
"Even with the highest capture rates achievable, the life cycle emissions of coal to DME production would be above those of LPG," the IEA stated in its report.
"DME production from coal with CCUS is unlikely to deliver significant emissions reduction relative to current LPG imports," they said.