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Luhut called on Jokowi to pressure Xi Jinping over coal imports

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Bisnis.com, JAKARTA – Maritime Affairs and Investment Coordination Minister Luhut B. Pandjaitan has revealed that President Joko Widodo has pressured Chinese President Xi Jinping to import coal from Indonesia.

According to Luhut, China has cut imports of coal from the world market by around 300 million tonnes. The reduction in imports is due to the fact that the country of the bamboo curtain prioritizes the use of domestic charcoal production.

“The president spoke to President Xi Jinping about it. The president asked President Xi Jinping if possible, maybe it still matters from us, maybe 100 million (of tons) or how much for to be able to later develop our production of the coal industry, “Luhut said in a statement. The 5th Save Indonesia Coal 2020 event, Monday (9/14/2020).

However, Luhut did not further explain how the Chinese government responded to President Jokowi’s request.

Meanwhile, China is the main destination for Indonesia’s coal exports. Based on data from the Indonesian Coal Mining Association (APBI), around 33% of Indonesia’s total coal exports went to China last year, around 27% to India and the rest. to other Asian countries.

Meanwhile, in January-July 2020, Indonesia’s coal export volume was recorded to reach 238 million tonnes, down 11 percent from the same period’s achievement last year which reached 266 million tonnes. Of this total, 83.01 million tonnes were exported to China.

Previously, Hendra Sinadia, Managing Director of APBI, said that the coal industry is now survival mode or survival mode in the face of the challenges of declining prices and demand for coal.

He said that due to the Covid-19 pandemic, global demand for coal is expected to experience a significant correction of up to 100 million tonnes. The biggest correction in demand came from the two major coal importing countries, China and India.

“This historical the biggest drop in history according to some analysts, ”Hendra said in early September.

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