Latitude Energy Signs MOU With Indonesia's Danantara on Coal Gasification
US energy-technology firm Latitude Energy and Indonesia's Danantara signed a memorandum of understanding on 8 July 2026 to explore a coal gasification project using TRIG technology. The deal supports Jakarta's coal downstreaming push and aims to turn low-calorie coal into domestic syngas to cut import reliance.
Latitude Energy and Danantara sign MOU on Indonesian coal gasification
US energy-technology firm Latitude Energy and Indonesia's state investment body Danantara have signed a memorandum of understanding to explore a coal gasification project in Indonesia. The agreement was signed on 8 July 2026 in Jakarta between Latitude Energy and PT Danantara Development Management Fund, a Danantara vehicle, according to liputan6.com and Antara.
The partnership would deploy Transport Integrated Gasification (TRIG) technology, which converts coal into synthetic gas, or syngas. Both sides framed the deal as an early step toward domestic syngas production that could reduce Indonesia's reliance on imports and support its coal downstreaming (hilirisasi) drive.
Low-calorie coal at the centre
Sigit P. Santosa, chief executive of PT Danantara Development Management Fund, said the partnership supports the Indonesian government's wider strategy of achieving energy self-sufficiency by using low-calorie coal, Antara reported. As one of the world's largest coal producers, Indonesia has scope to convert its lower-grade reserves into fuel and industrial feedstock at home rather than exporting them raw.
By producing syngas domestically, the companies said, Indonesia could cut import dependence while opening new opportunities for national industry.
Coal gasification converts solid coal into gas that can replace imported energy and serve as an industrial input. For Indonesia, which exports large volumes of coal, processing lower-grade coal at home would move value into local industry — the stated aim of the downstreaming policy. A deputy chair of business chamber Kadin, cited by Antara, linked coal downstreaming to stronger energy and food security.
US technology, Southeast Asia ambitions
Latitude Energy is offering Danantara a long-term partnership with management support, technical expertise and investment to build a coal gasification platform that can be scaled up, according to statements carried by liputan6.com and Antara. The firm views Indonesia not only as its first market but as a starting point for coal gasification projects across Southeast Asia.
"By combining Indonesia's abundant domestic resources with Latitude's TRIG technology, the world's most advanced coal gasification technology, we are committed to bringing leading US technology to Indonesia, developing local capacity and creating long-term value for Indonesia's downstream industry," said Jacob Thomas, president and chief executive of Latitude Energy Holdings Inc. He described the partnership as an integral part of Indonesia's energy sovereignty.
Washington backs the deal
The US Embassy in Jakarta welcomed the agreement. Joy M. Sakurai, the embassy's Chargé d'Affaires ad interim, said trade and investment ties between the United States and Indonesia held significant potential. "Advanced US energy technology can support energy security, industrial growth and long-term economic prosperity for both countries," she said in a written statement, as quoted by liputan6.com and Antara.
The MOU remains a preliminary step: no project capacity, investment value or timeline was disclosed. Antara noted the deal comes as Jakarta pursues coal downstreaming more broadly, including tests of dimethyl ether (DME) technology from China and Korea-Europe by Investment Minister Bahlil.