Indonesia offers coal for CPEC power projects

Envoy says Indonesian exporters can meet large chunk of Pakistan’s demand

APP January 19, 2022


The Indonesian coal industry is well refined and it can provide coal to Pakistan for power projects being developed under the China-Pakistan Economic Corridor (CPEC), said Indonesian Ambassador to Pakistan Adam M Tugio.

In a meeting with prominent businessmen in Lahore on Tuesday, the ambassador said that his country could also provide coal to the domestic large-scale manufacturing sector. The meeting was aimed at promoting bilateral cooperation and enhancing import of Indonesian coal by Pakistan. He pointed out that the government of Pakistan was paying special attention to the development of infrastructure and energy schemes under CPEC and coal was a major component of the energy projects. He was of the view that a large chunk of Pakistan’s coal demand could easily be met through a consortium of Indonesian exporters, who would trade with local businessmen.

“Indonesia currently exports 8.51 million tons of coal to the world and accounts for 26% of total exports of the commodity,” said Tugio. “Data shows that Pakistan’s coal demand is continuously increasing year after year.” In 2020, the total value of coal imported by Pakistan stood at $1.233 billion, however, a mere $224 million worth of coal was imported from Indonesia, he said while expressing concern.

He stated that apart from Indonesia, Pakistan received coal shipments from South Africa, Russia, Australia, Afghanistan and China.

The envoy stressed that Indonesia had the potential to increase its coal exports to Pakistan to around $1 billion.

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

Published in The Express Tribune, January 19th, 2022.

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