Bakrie’s Hand in Coal Gasification Project, Aiming for Incentives?

Summary

Bakrie Capital Indonesia, Air Products and Chemicals Inc, and PT Ithaca Resources signed a US$ 2 billion worth of coal-to-methanol (CTM) project contract. The coal gasification project hopefully could reduce the country’s dependence on imported methanol. The Coordinating Maritime Affairs and Investment Minister’s spokesperson, Jodi Mahardi, argued that the gasification project could shrink Indonesia’s current account deficit, and increase its foreign exchange reserves.

“The project is in line with the government’s attempt to boost domestic production in various sectors,” he revealed in a written statement on Thursday (5/14) night. The government is also trying to increase the added value of various domestic products. Hopefully, the agreement between Bakrie Capital, Air Products and Chemicals, and Ithaca Resources can help improve the employment rate, especially in the upcoming construction and operational stages of the CTM project.

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