Sasol, with the Government of the Republic of Indonesia, signed a Memorandum of Understanding which facilitates the commencement of a screening study into the viability of an integrated Coal-to-Liquids (CTL) project in the Republic of Indonesia, using Sasol's proprietary technology.

The Memorandum of Understanding was signed in London by Gita Wirjawan, the chairman of the Investment Coordination Board of the Republic of Indonesia and Ernst Oberholster, the managing director of Sasol Synfuels International (Pty) Limited.

Sasol has been producing fuels and chemicals from coal for over fifty years in South Africa and operates the world's only commercial scale coal-based synthetic fuels manufacturing facility at Secunda in South Africa. Based on the outcome of the study, Sasol's proprietary technology may be deployed to produce approximately 80 000 barrels per day of high quality ultra-clean transportation fuels, from Indonesia's abundant domestic lignite coal reserves.

Indonesia's wealth of stranded coal resources, coupled with the country's strategic drive for enhanced energy security are two vital components that favourably contribute to Indonesia being an ideal location for a CTL facility. Such a facility could make a significant contribution to the Indonesian economy through savings in foreign exchange, skills development and job creation and the production of value-adding products.

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