Indonesian Mining Association (IMA) and Indonesian Coal Mining Association (APBI) members have put forward their expectations for ideal government incentives—primarily through the Ministry of Finance—to advance coal downstream projects, particularly Dimethyl Ether (DME) production as a substitute for Liquefied Petroleum Gas (LPG). IMA Executive Director Hendra Sinadia pointed out that Government Regulation (PP) No.39 of 2025 on mineral and coal mining operations grants holders of Special Mining Business Licenses (IUPK) the right to revise their Value Addition Enhancement (PNT) plans. He told Kontan on Thursday (11/12/2025) that the government should provide incentives to support such revisions, including allowing companies to adjust investment values to smaller, reasonable levels that are financially viable for them.

Hendra noted that coal PNT projects belong to pioneer industries, facing multiple uncertainties in technology, funding, and economic aspects. The most anticipated incentives for operators include legal certainty—such as clear implementation rules for non-tax state revenue (PNBP) exemptions (0% PNBP), tax holidays, and simplified licensing procedures. These three incentives will greatly assist companies in formulating and fulfilling their coal PNT obligations. Additionally, regulatory con...