India hosts 5th Joint Working Group on Coal between India and Indonesia.

The India-Indonesia fifth joint working group on coal was held on November 5, 2020. The meeting was held virtually.


In the meeting, both the countries discussed the Indian Coal Policy reforms, commercial mining of coal in India and the about the coal exploration.

Why this conference was held?

India is looking for the opportunities to import more coal from Indonesia. India is looking for new opportunities in the light that the coal prices in world market is declining at rapid rate. So, India plans to replace the coal imports destinations with Indonesia. However, India does not want to increase overall coal imports.

Why India choose Indonesia?

The coal prices in Indonesia have fallen significantly in September 2020 amid the Covid-19 pandemic. The price of the coal there have been declining since March 2020. Further, Indonesia is the third largest coal producer in the world. The coal from Indonesia accounts to 40% of world coal exports.

Why Indonesia agreed to the deal?

Currently, China is one of the main and biggest coal importer from Indonesia. But, because of the pandemic, China’s economy has declined. Reason being this, Indonesia has been suffering.

India’s coal production

India have the fourth largest coal reserves in the world. Despite this, India imports more than 250 million tonnes of coal from other countries. To decrease the dependency,  the Government of India recently opened the coal mines to the private sector. This will help in boosting the domestic production.

Coal Import

Currently, South Africa is the largest coal supplier to India, South Africa is followed by Australia. As of now, India has imported 128.7 million tonnes of coal out of which, 50.4 million tonnes were imported from Indonesia.