Indonesia Holds the Potential to Generate Oil & Gas from Coal Similar to China

RRI.CO.ID, Jakarta – Minister of Energy and Mineral Resources Bahlil Lahadalia, stated that current technological advancements allow Indonesia to process low-calorie coal into gas and oil. He conveyed this in a press statement following the commemoration of the 81st Mining and Energy Anniversary in Jakarta on Monday, September 21, 2026.

Bahlil explained that coal utilization is evolving alongside progress in science and modern processing techniques. He noted that China has even successfully implemented the processing of low-calorie coal into gas.

"Now the technology is advanced where low-calorie coal can produce gas and oil. Well, we will continue to follow up on what the President has conveyed. In several countries like China, the gas has already been extracted from low-calorie coal," Bahlil said.

He affirmed that some companies have already offered to partner with Indonesia on this matter. He added that this interest stems from the country's massive coal potential.

Bahlil explained, "And several companies have made offers to us to cooperate. We know that our potential for low-calorie coal is enormous. This is likely what the President meant."

Previously, President Prabowo Subianto stated in his speech that Indonesia has the potential to produce gasoline from coal on Saturday, September 19, 2026. This step is being taken following the successful implementation of B50 in reducing reliance on fuel imports.

Bahlil stated that his ministry will follow up on the directive. According to him, this instruction is also related to efforts to foster energy security amid ongoing geopolitical uncertainties.