Indonesia Can Help India’s Electricity Crisis


Heatwaves of up to 45 degrees Celsius in several parts of India caused the country to be hit by an electricity crisis. The electricity crisis was influenced by the excessive use of electricity for air conditioning. But on the other hand, India’s coal supply continues to dwindle.

It is known, In overcoming the electricity problem, especially in terms of coal supply, the Government of India has urged the business world to immediately import 19 million tons of coal by the end of June. For that, Indonesia can help India’s electricity crisis with its coal exports.

If India increases the number of coal imports from Indonesia, then this could be a blessing for Indonesia.

Executive Director of the Indonesian Coal Mining Association (APBI), Hendra Sinadia confirmed that currently there is an excess demand for coal from India. it’s just that for the amount of detail, Hendra doesn’t know yet.

“But as usual, buyers from India always try to find more competitive prices,” explained Hendra, Tuesday (10/5/2022).

According to Hendra’s notes, so far India has become the second-largest Indonesian export destination after China. Referring to the data disclosed, in 2021 coal exports to India will reach 65 million tons.

Director of PT Bumi Resources Tbk (BUMI), Dileep Srivastava stated that demand from India was increasing, it’s just that the current high price of coal has prevented India from importing high-quality coal. more.

Unfortunately, Dileep said, due to the La Nina phenomenon season and heavy rains since the fourth quarter of 2021 in Indonesia, coal production has decreased. Therefore, coal producers from Indonesia have decided to prioritize the fulfillment of coal for domestic needs, especially PT PLN (Persero).

“Hopefully the rains can ease from late May 22, until then supply is very limited and it is difficult to meet new demand arising from the Ukraine war. However, we see upward pressure on coal prices which are likely to remain high this year and possibly beyond,” said Dileep.

Furthermore, the demand for electricity across India has increased during the current heatwave conditions. Unfortunately, coal stocks in power plants, particularly in coastal areas, are reported to have reached alarming levels.

Meanwhile, rail transport constraints further exacerbated the situation forcing the authorities to cut off passenger trains and move more coal dredgers.

The Government of India is reported to have taken note of this situation and has mandated that 10% of coal consumption by coastal power plants should be imported for the next 3 years. There are also reports that the industrial sector is suffering as the priority is generating power