Indonesia Plans to Produce Gasoline From Coal as Government Seeks to Cut Fuel Import Dependence

President Prabowo Subianto said Indonesia plans to develop gasoline production from coal as part of efforts to optimize domestic resources. (Red/Pwt)

PEWARTA.CO.ID — Indonesia is preparing to explore gasoline production from coal as the government seeks to maximize domestic natural resources and reduce dependence on imported fuel.

President Prabowo Subianto has backed the development of coal-to-liquid technology, following the implementation of fuel programs based on palm oil, according to a report by Detik Finance on Monday, September 21, 2026.

The proposed project would convert coal into liquid fuel, potentially giving Indonesia another domestic source of gasoline while supporting the government's broader energy security strategy.

Prabowo said Indonesian engineering experts have already succeeded in developing diesel and gasoline from palm oil and that similar efforts could be extended to coal. In remarks translated from Indonesian, he said the country would also produce gasoline from coal.

"Our smart professors, the truly smart ones, from our engineering faculties have succeeded in making diesel from palm oil and have also been able to make gasoline from palm oil, and we will also later make gasoline from coal," Prabowo said.

The plan is not based on an untested concept globally. Tri Winarno, Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, said coal-to-liquid technology has been used in several countries for decades.

Coal-to-liquid technology already used overseas

Tri pointed to Germany as one of the earlier examples of converting coal into liquid fuel, particularly when access to crude oil was limited.

"Coal-to-liquid has actually been around for a long time in the world. In East Germany, for example, they had no oil resources, so they converted coal into oil for tanks," Tri said in remarks translated from Indonesian.

He also cited South Africa, where Sasol Ltd. has applied coal liquefaction technology on a large scale.

According to Tri, Sasol developed the technology under circumstances in which South Africa faced international restrictions during the apartheid era and has continued operating coal-based fuel production.

"Then we can look at Sasol in South Africa. It was affected by apartheid politics and was banned by other countries, so Sasol liquefied coal. Even today, Sasol is producing around 300,000 barrels per day," Tri said in a translated statement.

The examples were presented as evidence that coal-to-liquid technology has already been deployed commercially, rather than as a new technological concept that Indonesia would need to develop from scratch.

Indonesia is still evaluating the technology

Despite the government's stated intention to pursue coal-based gasoline, Indonesia has not yet determined which technology will be adopted.

The Ministry of Energy and Mineral Resources is conducting a more detailed evaluation of available technologies and potential approaches, Tri said.

Several options are still being assessed, with the focus placed on technological suitability rather than the country of origin of a prospective partner.

"Several are still being evaluated. As for the country, that is not the main issue; what matters is the technology," Tri said in a translated statement.

The evaluation leaves open the question of which technology provider or international partner could eventually be involved in Indonesia's coal-to-liquid project.

For the government, the planned initiative forms part of a wider effort to make greater use of domestic resources and reduce reliance on imported fuel. Its development, however, remains at the evaluation stage, with the technology selection still under review.