Monday, December 5, 2022
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Indonesia is willing to provide coal for CPEC power plants

ISLAMABAD: According to Indonesian Ambassador to Pakistan Adam M Tugio, the Indonesian coal sector is well-developed and capable of supplying coal to Pakistan for power projects under the China-Pakistan Economic Corridor (CPEC).

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The envoy stated in a meeting with major businesses in Lahore on Tuesday that his nation could also offer coal to Pakistan’s large-scale industrial industry. The goal of the conference was to promote bilateral cooperation and increase Pakistan’s imports of Indonesian coal. He stated that the Pakistani government was paying close attention to the development of infrastructure and energy programmes as part of the CPEC, and that coal was a crucial 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.

Also read: Projects under newly created CPEC working groups are reviewed at this meeting

“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.”

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