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Indonesian coal exports support CPEC energy projects in Pakistan

Ambassador of Indonesia to Pakistan, Adam M Tugio on Tuesday said since Indonesia is refined in the coal industry, it could provide coal for the power projects under the CPEC and to Large Scale Manufacturing Industries (LSMI) in Pakistan.

Indonesia currently exports 8.51 million tonnes of coal to the world market, accounting for 26 per cent of the total global coal exports, he said.

The Indonesian envoy met with prominent businessmen in Lahore for promoting bilateral cooperation especially the Indonesian coal in Pakistan, a statement said.

The meeting was attended by several businessmen from different sectors, such as textile industry, steel, ceramic and cement, all of which have the potential to import coal for their energy generators.

The government of Pakistan has been paying special attention to the development of infrastructure and energy supply as it is one of the ‘Belt and Road’ Initiative countries, where coal is a major part of energy projects.

“By knowing exactly the nominal demand for coal along with the specifications, the demand for coal products will easily be consolidated through a consortium of Indonesian exporters to meet specific demands here,” the Ambassador remarked.

He said the figures show that Pakistan’s demand for coal is continuously increasing every year.

In 2020, the total import value of coal (coal, briquettes) was $1.233 billion (17,146 million tonnes), while Indonesia’s exports to Pakistan were merely $224 million (3,520 million tonnes), he informed.

The Indonesian envoy said that Indonesia still has the potential to increase exports to meet Pakistan’s coal market requirement of around $1.008 billion.

“Through modern approaches, it is hoped that the combination of large-scale Pakistani companies can maintain supply chain continuity and control the quality of the imported coal, and the consortium of Indonesian suppliers will obtain certainty and continuity of orders from the group of Pakistani companies,” Ambassador Tugio added.

BP’s Statistical Review of World Energy 2021 noted the volume of Indonesia’s coal exports to the world in 2020 reached 8.51 million tonnes.

This figure is equivalent to 26.8 per cent of the total volume of coal exports in the world.

Apart from Indonesia, Pakistan’s coal imports came from South Africa amounting to $829 million, Russia $85 million, Australia $45 million, Afghanistan $43 million, China $1.194 million and others, he said.

He said that the gathering was initiated by the Indonesian Embassy in Islamabad to promote diversified Indonesian products in Pakistan other than palm oil.

It was also explored to convene business matching focusing on areas where Indonesia and Pakistan industries have complementarity such as in textiles and garments industry where cotton, yarn, polyester can be imported from Indonesia.