Indonesia and China Sign US$1.46 billion Coal Purchase Contracts

By Editorial Team 27/11/2020
Coal Mining
Summary

The Indonesian Coal Mining Association (APBI) and China Coal Transportation and Distribution (CCTDA) on Wednesday (11/25) signed a coal purchase contract for three years, with a total value of US$1.46 billion. Referring to the contract, coal shipments from Indonesia to China will start in 2021. Even so, APBI Chairman Pandu Patria Sjahrir said that China would review the number of coal exports from Indonesia every year.

Besides, the two parties can negotiate price index periodically as a reference price for imports from Indonesia to China. "This agreement is expected to provide certainty of coal exports to China for coal industry players in Indonesia so that it will be a positive sentiment in supporting the national economic recovery," he said in a written statement on Thursday (11/26).

Pandu also expressed his appreciation to the Indonesian government for pushing the trade agreement. "With this cooperation, national coal producers are optimistic about 2021, although the global coal market is predicted not to fully recover to the level of 2018-2019," he said.

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