India-Indonesia ‘5th Joint Working Group on Coal’ Meeting

India and Indonesia will be holding the fifth joint working group on coal meeting virtually on November 5, 2020. The meeting  will throw light on Indian Coal policy reforms including the coal exploration, commercial coal mining, research and development.

Key Facts

  • Both the countries will discuss to bring Industries from both sides on a common platform to discuss the issues affecting the coal production.
  • They would also be discussing the opportunities of regulatory framework on the coal production.
  • They will explore the areas of business opportunities in coal sector.
  • They will also discuss the potential of the India- Indonesia business cooperation on coal in the post covid-19 era.

Coal production in Indonesia

Indonesia is one among the major coal producer on the world.  Indonesia exported 450 8.8 million tons of coal in 2019 alone. One good quality of the Indonesian coal is that it has less  Sulphur content  and produces less Ash. Thus, emits less pollutants.

India – Indonesia coal cooperation

India is looking for the opportunities to import more coal from Indonesia.  Indonesian coal prices are declining due to COVID-19 in the world market.  So, India plans to replace coal import destination with the Indonesia. India will replace some other country with Indonesia so that its overall coal imports does not increase. Indonesia is currently the top supplier of coal to India in Southeast Asia Region.

Coal Import

South Africa is the largest supplier of coal to India. India imports 3 million tonnes of coal from South Africa monthly.  It is followed by Australia.  Coal imports of India has  increased by 12.6 % in 2019.  India has imported 128.7 million tonnes of coal as of September 2020.  Out of these, 50.4 million tons of coal were imported from Indonesia.