Indonesia is planning to produce motor gasoline using coal as a base material to strengthen national energy security amid shifting global geopolitics. Energy and Mineral Resources Minister Bahlil Lahadalia confirmed on Monday, September 21, 2026, that several companies have already offered cooperation for the coal conversion initiative.
The push toward domestic fuel independence follows a strategy of leveraging local resources to shield the nation from international supply disruptions. President Prabowo Subianto outlined the coal-to-gasoline directive, noting that the government plans to build upon the momentum of existing domestic fuel programs.
Bahlil Lahadalia Confirms Corporate Partnership Offers and Low-Calorie Coal Potential
Speaking on Monday, September 21, 2026, at the sela-sela acara Donor Darah Ditjen Minerba in Jakarta, Energy and Mineral Resources Minister Bahlil Lahadalia stated that the directive to turn coal into gas or liquid fuel stems directly from unpredictable global conditions. The administration aims to extract maximum utility from domestic reserves, particularly low-calorie coal, which can be processed with advanced technology.
Energy and Mineral Resources Minister Bahlil Lahadalia stated that, in his capacity as Minister of Energy and Mineral Resources, he would follow up on every order and directive from the President regarding optimization to enhance energy security by utilizing domestic energy sources, as he noted when met on the sidelines of the Directorate General of Mineral and Coal Blood Donation event held in Jakarta on Monday, September 21, 2026.
Bahlil further explained the underlying motivation for the policy, stating that what President Prabowo conveyed regarding producing gas or oil from coal stemmed from the consideration that amidst uncertain geopolitical conditions, President Prabowo’s directive to them was to optimize all existing energy potential in Indonesia, with one of them being alternative energy from coal.
According to the Minister of Energy and Mineral Resources, modern processing technology allows low-calorie coal to yield valuable gas and liquid hydrocarbons. Energy and Mineral Resources Minister Bahlil Lahadalia noted that technology has now advanced to the point where low-calorie coal can produce both gas and oil. He also noted that several companies had already approached them to offer cooperation.
Drawing From Domestic Palm Oil Success and Energy Independence Strategies
The planned transition to coal-derived fuel builds upon an existing policy framework that has expanded domestic fuel production. President Prabowo Subianto pointed to the success of local technical experts and engineers in developing alternative fuels from agricultural commodities.
President Prabowo Subianto remarked, as reported by detik on Sunday (Sept 20), that their brilliant professors—the genuinely smart ones, not the previously mentioned professors—from their engineering faculties had already successfully produced diesel from palm oil and gasoline from palm oil, and that they would also produce gasoline from coal in the future.
Prabowo emphasized that the implementation of programs such as B50—which utilizes palm oil mixtures—helped the country eliminate the importation of certain fuel supplies, leading the administration to target coal next for gasoline production. Dirjen Minerba Tri Winarno stated that the ministry is actively evaluating potential technologies and processing methods based on international experiences.
Global Precedents in China and the Road Ahead for Domestic Energy
The pursuit of synthetic fuels mirrors methods applied abroad, particularly in China. President Prabowo Subianto noted that China previously developed technology to convert coal into oil, gas, and chemicals to strengthen its energy security following the Iran conflict.
As the Ministry of Energy and Mineral Resources evaluates incoming corporate offers and technological frameworks, the focus remains on executing the president’s mandate to utilize domestic sources. By harnessing low-calorie coal reserves through advanced conversion techniques, the government seeks to insulate the national economy from overseas fuel shocks and navigate uncertain geopolitical climates.
