Indonesia starts construction of $3.1b coal gasification plant to cut LPG imports

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JAKARTA - Indonesian President Joko Widodo launched construction of a US$2.

3 billion coal gasification plant on Monday , in a bid to slash the country's liquefied petroleum gas imports while optimising its coal resources.

Indonesia is looking to its own resources to boost energy supplies but there are concerns that heavy reliance on polluting coal, already its main fuel source for power generation, will further increase the nation's greenhouse gas emissions.and is seeking help from wealthy nations to achieve that goal to fight climate change.

"We can reduce a subsidy from the state budget by around 7 trillion rupiah , while improving our trade balance and our current account deficit," said Jokowi, as the president is popularly known.

 

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