As the action of synthetic fuel development by coal-to-liquid technology in Indonesia, South African Synthetic Oil Ltd (SASOL) Synfuels International cooperate with the Government of Indonesia prepare US$ 3 million for doing two foreword study that will be finished in the end of 2010. SASOL is the company which is synthetic fuel producer in London UK, and they have land to produce synfuel in South Africa.

There are two chosen location to develop coal-to-liquid technology, i.e., East Kalimantan and South Sumatra because the locations has the best coal field in Indonesia. Beside of that, in those area have so many old well. The reason is, SASOL technology still produce side product, i.e., CO2 that has to be wasted. The possible solution to waste the CO2 is injected to the old well. The study will be continued with feasibility study that the target is finished in 2015. After that, continue with the construction work.

Coal-to-liquid technology uses lignite coal that has low calorie and hard to be exported because the price is cheap in international market. Indonesia has around 60 billion tonne coal deposit and 85% is lignite.