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DME Dimethyl Eter

Indonesian Government Policy – Kerosene Conversion to LPG

Support Indonesian Government policy (2005) in providing alternative energy sources for the domestic demand; National energy policy (2006) - Kerosene conversion to LPG Program. Due to LPG Shortage, Import gradually increased to 6 millions ton per year

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The Impact of Kerosene conversion to LPG

Number of LPG consumption in Indonesia

Source : ESDM (http://prokum.esdm.go.id/Publikasi/Statistik/)

0

5

10

15

20

25

30

35

40

2005 2006 2007 2008 2009 2010 2011 2012

2005 – 2012 (Million BOE)

Indonesian LPG Production

The number of LPG Production in Indonesia

Source : ESDM (http://prokum.esdm.go.id/Publikasi/Statistik/)

0

500

1000

1500

2000

2500

3000

2005 2006 2007 2008 2009 2010 2011

2005 – 2011 (Thousand Tons)

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Indonesian LPG Import

The number of LPG Import in Indonesia

Source : ESDM (http://prokum.esdm.go.id/Publikasi/Statistik/)

0

500

1000

1500

2000

2500

2005 2006 2007 2008 2009 2010 2011

2005 – 2011 (Thousand Tons)

LPG Production, Import, Export &

Consumption Projection

Source: BBPT “Outlook Energi Indonesia 2011”

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Since 2010, Indonesia stops exporting LPG

LPG Import Increases, by volume and by value

Import energy, mean national energy security

level is quite vulnerable

The Needs of alternative energy

National Energy Security

Subsidized LPG

Year Total Fuel/ LPG Component

2012 Rp 178,7 / 29,1 Triliun

2011 Rp 164,7 Triliun

2010 Rp 82,35 Triliun

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Alternative Energy Opportunities

Develop a new potential alternative energy

DME is one of new potential alternative energy

DME can reduce the cost of LPG imported,

and because DME cheaper than LPG, that can

decrease the cost of subsidized also

The Increasing of LPG users in Indonesia is

certainly increase market opportunities of DME

as a business/industries.

LPG Price Increases

58000

60000

62000

64000

66000

68000

70000

72000

July 2008 August 2009 October 2009

LPG 12 Kg (Rupiah)

Note : The Highest Pertamina’s official price increase Periode before 2013 Source : Pertamina (http://www.bisnis.com/mulai-senin-224-harga-lpg-12-kg-naik-rp12000-rp20000)

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DME can be produced from Lawrank coal.

PT. Tambang Batubara Bukit Asam Persero (“PTBA”)

have a lawrank coal in Peranap Riau area,

estimated reserves of 745 million tons (of coal

samples at these locations have checked by Lurgi).

DME Project

Indonesia Coal Consumption,

Production & Export Projection

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World Coal Reserves

Country / Region Coal Reserves (MILLION TONS)

North America 246

Russia 147

China 115

Australia 76

India 59

Europe 50

Africa 32

Indonesia 28 (2% - 3% world

reserves)

Soute America 15

LPG needs of national self-sufficiency through production of

Dimethyl Ether ("DME") which is a substitute product for LPG

and diesel fuel.

National foreign exchange savings through reduction in

imports of LPG.

Increase the utilization of environmentally friendly fuels.

Utilization of national energy potential for the type of low rank

coal through gasification in the mouth of the mine.

Commercial value creation over the content of low rank

coals.

2009, PT. Arrtu Mega Energie and Pertamina sign MoU to

produce DME as an alternative fuel (LPG).

DME

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Item Description Status

1 Land Purchased DONE

2. Land and site survey DONE

3. Soil Investigation Study DONE

4. Structuring/Financial with Bank In Progress

5. DME Sales and Purchase Agreement with PERTAMINA Signed on 02/07/2009

6. PMC with WORLEY PARSONS Signed

7. Pre-FEED with LURGI Signed and awarded

8. EPCC with LURGI and IKPT In Progress

9. Feedstock Methanol :

-PT. HUMPUSS

-BP

-Mitco Petronas

-Sabic

-Mitsubishi Corp.

Signed on 12/01/10

Signed on 29/03/10

In Progress

In Progress

In Progress

10. Utility Supply and Supporting Facility :

-Methanol Storage Tank by PT. KDL

-N2 by Air Liquide

-Plant/Instrument Air by Air Liquide

-Electrical power by KDL

-Demin Water by PT. KDL

-Sea Water Cooling System by PT. KDL

-Steam by PT. KDL

-Unloading and back loading Jetty by PT. KDL

DONE

In Progress

In Progress

DONE

DONE

DONE

DONE

DONE

DME Project Status

Item Description Status

11. AMDAL, UKL, UPL DONE

12. Blending and Market Trial DONE

13. Government and Local Authority Approval

-Izin Pengolahan Kilang (MIGAS)

-Basic Design Terminal DME-LPG

-BKPM (Cilegon)

-UKL – UPL DME Plant

-UKL – UPL Terminal DME-LPG

-IMB DME Plant

-IMB Terminal DME-LPG

DONE

DONE

DONE

DONE

DONE

DONE

DONE

14. Ground Breaking May 24, 2010

DME Project Status – cont.

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Market Trial – DME Product

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Project Support - DME

National Regulation

Formal regulations regarding the cylinder,

handling, and allowable percentages of DME

to be used in such blends are a necessary next

step towards further market development, and

establishment of internationally-recognized

safety and handling procedures.

Regulations & Standards - DME

International standards related to the use of

DME are anticipated from the International

Organization for Standardization (ISO) in 2014.

Progress towards a single standard for LPG and

DME blends is being made, with technical

research being conducted by companies

involved in the production, blending, and

distribution of DME in China, in conjunction with

the manufacturers of vales, seals and cylinders.

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Conclusion

The Future of DME In Indonesia DME will be alternative clean energy.

The Application can be broad, like household, transportation,

power plants and other

The crucial factor is regulation for the standardization and

regulation for the market system