China to Buy Thermal Coal Worth $1.46 Billion from Indonesia Next Year

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.

Also read: Indonesia, China Sign Agreement to Boost Trade Ties amid Pandemic

The agreement between the companies is worth $1.46 billion, Hendra said.

The cooperation will not only pave the way for a long-term export policy but will also facilitate Indonesian coal producers to meet the Chinese buyers in a bid to increase the bilateral trade between the two nations.

“The agreement aims to enhance the ties between the two countries to increase coal exports to China by 200 million tons in 2021,” Hendra said.

(Writer: Rully R. Ramli | Editor: Ambaranie Nadia Kemala Movanita)

Source: https://money.kompas.com/read/2020/11/26/192310026/tahun-depan-china-beli-batu-bara-indonesia-senilai-rp-206-triliun.