JAKARTA, KOMPAS.com – China has agreed to buy 200 million tons of thermal coal from Indonesia next year following the signing of a trade deal between the Indonesian Coal Mining Association (APBI) and China Coal Transportation and Distribution (CCTDA).
Agung Pribadi, spokesperson for the Ministry of Energy and Mineral Resources (ESDM), said that the purchase of thermal coal is worth $1.46 billion.
The agreement is expected to boost the coal price that has fallen sharply amid the Covid-19 pandemic.
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“I am optimistic that the coal commodities will recover following this cooperation. It’s a moment to restore the production as previously projected,” said Agung in a statement on Thursday, November 26.
Agung went on to say that the cooperation came after a high-level visit by Coordinating Maritime Affairs and Investment Minister Luhut Binsar Pandjaitan to China a few months ago.
“This effort reflects a concrete step of the Indonesian and Chinese governments in celebrating the 70th anniversary of the establishment of diplomatic relations between the two countries,” said Agung.
Meanwhile, APBI executive director Hendra Sinadia said the agreement of the coal sales with China will increase the trade volume between the two nations.
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The agreement between the companies is worth $1.46 billion, Hendra said.