1st ‘India Indonesia Energy Forum’ held in Jakarta
The Energy Forum was preceded by 2nd Joint Working Group (JWG) on Oil and Gas, 4th Joint Working Group on Coal and 1st Joint Working Group on New and Renewable Energy. The reports of three Joint Working Groups were presented to two Ministers during the Energy Forum.
The 2nd JWG on Oil and Gas discussed policy framework of India and Indonesia, oil and gas infrastructure development, cooperation opportunities in capacity building and business opportunities in oil and gas sector in both countries. Representatives of major Indian companies in oil and gas sector such as ONCG Videsh Limited, Petronet LNG Limited, Gas Authority of India Limited (GAIL) and Bharat Heavy Electricals Limited (BHEL) participated in the JWG. Indonesian companies such as PT Pertamina, PT Triputra, PT Nusantara Regas, Medco Energy and PT PGN were also represented.
The 4th JWG on Coal has five sessions dedicated to policy framework, coal resources development, capacity building, research and development and issues and concerns of private sector. Indian companies such as Coal India Limited, Adani Enterprises, Tata Power Company, PT Adani Global, PT Core Mineral Indonesia, PT BaramultiSuksessarana, PT Barasentosa Lestari and PT Jindal Overseas also participated in the JWG.
The 1st JWG on New and Renewable Energy was held through video-conferencing. The two sides discussed policy framework and investment opportunities in India and Indonesia. Both sides agreed to focus on Capacity building, Exchange of Scientific and Technological information and data, Transfer of Technology on Non-commercial basis in bio fuel and geothermal area, Development on Joint Research or Technical Projects on subject of Mutual interest, Encouragement and promotion of investment and Encouragement of policy Dialogue in solar park.
In his remarks, Shri Piyush Goyal appreciated the warm hospitality extended by his host and said that his interaction with Minister Ignasius Jonan was one of the most fruitful one. He said that the visit of President Joko Widodo to India in December 2016 has been instrumental in fast forwarding of Energy Forum. He said that two sides have agreed to explore cooperation in number of areas such as upgrading of refineries in Indonesia, relocation of gas-based plants from India to Indonesia, sharing of experience in use of LEDs and renewable energy in India, sharing the expertise of Indonesia in gasification of fuel oil, exploration of oil, gas and coal fields. Shri Goyal requested Minister Jonan to consider joining International Solar Alliance as Indonesia is solar-rich country. He also requested Minister Jonan to revisit changes in policy in coal sector and work visa.
In his remarks, Mr. Jonan said that Indonesia is important destination for investing especially in energy and infrastructure sector. Minister Jonan said that a team of 19 officials from oil and gas, coal and power sectors will be visiting India to look into several issues discussed during Energy Forum such as relocation of gas-based plants, large scale use of LEDs for energy conservation, visit to sophisticated oil refineries and to Indian Institute of Mines.
A Memorandum of Understanding between the Ministry of Petroleum and Natural Gas, Government of India and the Ministry of Energy and Mineral Resources of the Republic of Indonesia on cooperation in the field of Oil and Gas was signed on the occasion. The MOU seeks to establish a cooperative institutional framework to facilitate and to enhance bilateral cooperation in the field of oil and gas sectors on the basis of equality and mutual benefit.
Apart from meeting, Shri Goyal and Mr. Jonan met H.E. Mr. Budi Karya Sumadi, Minister for Transport of the Republic of Indonesia, H.E. Mr. Arcandra Tahar, Deputy Minister for Energy and Mineral Resources of the Republic of Indonesia and Mr. Thomas Trikasih Lembong, Chairman of Indonesia Investment Coordinating Board (BKPM). Shri Goyal also interacted with investors from Indonesia and attended an event organized in his honour where he met with the Indian community.
India is third largest importer of coal from Indonesia. India’s imports of coal from Indonesia amounted to US$ 3.5 billion in 2016. Several Indian companies have invested in coal mines in Indonesia. The bilateral trade between two countries stood at US$ 15.90 billion in 2015-16 with Indonesia’s export to India amounting to US$ 13.06 billion and India’s exports to Indonesia amounting to US$ 2.84 billion. There is an agreed understanding on both sides to increase the exports from India to Indonesia to improve the trade balance.