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China's $2b coal deal with Indonesia may hit Australia

CHN Bamboo

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JAKARTA - China plans to buy about US$1.5 billion (S$2 billion) of coal from Indonesia after agreeing to a new three-year supply pact, a move that has the potential to further weaken trade ties with rival supplier Australia.

Indonesia will seek to raise coal exports to China from 2021 and aims to attract investment in the development of processing technology, according to the Indonesian Coal Mining Association, which on Wednesday signed a memorandum of understanding with the China Coal Transportation and Distribution Association.

Further discussions will take place over export volumes, according to the Indonesian association's statement.

The value of Indonesia's coal exports to China fell to US$4.9 billion between January and September on weaker demand, from US$5.8 billion in the same period in 2019, according to the statement.

The deal comes as relations between China and Australia deteriorate. China has blacklisted a range of Australian commodities as a diplomatic spat between Beijing and Canberra worsens.

Tensions between the two trading partners have intensified since Huawei Technologies was barred from building Australia's 5G network in 2018.

Chinese power stations and steel mills were told to stop using Australian coal and ports were instructed not to offload the fuel, Bloomberg News reported in October.

In another move that will unnerve Australian exporters, China will impose anti-dumping duties of more than 100 per cent on Australian wine from this weekend, the latest sign of deteriorating trade tensions between the two nations.
 

Indos

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This deal is a minor fraction of what has happened between Indonesia and China in the previous year for coal deal. Indonesia still has capacity to provide more coals if the deal is being followed by much larger possible deal in the coming future.
 
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TaiShang

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This deal is a minor fraction of what has happened between Indonesia and China in the previous year for coal deal. Indonesia still has capacity to provide more coals if the deal is being followed by much larger possible deal in the coming future.
I am expecting a big deal very much like China had with Russian natural gas back in 2014.

A big deal would further bolster China-Asean trade, lifting it no 1 position for both sides.

Nothing China buys the shreeking Australian regime is cannot be replaced. Basically, US soybean 2.0.

Australia wanted to become an enemy since 2013 when they funded the Kangaroo court (no pun) on SCS. They finally made it.
 

bshifter

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one's loss is another's gain. European wine are being served in China while Aussie wine are no where to be seen. Hit them hard with seafood too, many countries will be eager rushing to China ready to sell their produce while Aussies can look for his new imaginative customer according to viet and dbc.
 

Viva_Viet

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This deal is a minor fraction of what has happened between Indonesia and China in the previous year for coal deal. Indonesia still has capacity to provide more coals if the deal is being followed by much larger possible deal in the coming future.
Actually it's a loss for ID in the long term as ID keep relying on selling natural resources instead of making good own phone ,own car, own AI cameras, own 5G etc to sell to RCEP nations.

No countries reach to developed status by selling huge amount of coals,bro
 

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Why the f*ck is china buying it from Australia when Pakistan has huge coal reserves 🤔
Not enough production to feed domestic coal demand. China is the largest coal producing countries, followed by USA, India, and Indonesia but with much big gap. I believe Pakistan coal production is quite low, even Pakistan imports coal from Indonesia.

 

Salahuddin Ayyubi

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Why the f*ck is china buying it from Australia when Pakistan has huge coal reserves
Coals have different levels of quality. Australia and Canada have the highest grade of coals in quality therefore their coals coast more.

Pakistani coals are in the second lowest grade.

In simple terms, coal quality refers to how much energy can be generated from the breakdown of a single coal.
 

TaiShang

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Actually it's a loss for ID in the long term as ID keep relying on selling natural resources instead of making good own phone ,own car, own AI cameras, own 5G etc to sell to RCEP nations.

No countries reach to developed status by selling huge amount of coals,bro
It is not the question of selling natural resources. Qatar does that, too. Malaysia and Brunei, as well. It is the question of how the revenue is spent; where the money is allocated.

With the money well spent, Indonesia can slowly move up in the value chain. What is critical know is sustainable growth without incurring foreign debt, and fair and smart allocation of resources.
 

Indos

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Actually it's a loss for ID in the long term as ID keep relying on selling natural resources instead of making good own phone ,own car, own AI cameras, own 5G etc to sell to RCEP nations.

No countries reach to developed status by selling huge amount of coals,bro
We needs USD to maintain our currency value, it gets huge pressure since 2012. We want to make it more stable, support from coal export is necessary. Once we have stronger currency, then we are likely to decrease the export. Our current government has already said to increase the value added of our coal in the future. Some project has been done for such goal.

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Indonesia's manufacturing exports top US$94 bln

23rd October 2020

Jakarta (ANTARA) - Indonesia’s manufacturing industry recorded US$94.36 billion in exports in January-September this year, contributing 80.5 percent to the country’s total exports for the period.

 

Viva_Viet

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It is not the question of selling natural resources. Qatar does that, too. Malaysia and Brunei, as well. It is the question of how the revenue is spent; where the money is allocated.

With the money well spent, Indonesia can slowly move up in the value chain. What is critical know is sustainable growth without incurring foreign debt, and fair and smart allocation of resources.
Qatar,Malaysia, Brunei still can't make any good ow phones, AI cams, 5G like VN bcs they can make easy money from selling oil.

And they r dead when their oil run out
We needs USD to maintain our currency value, it gets huge pressure since 2012. We want to make it more stable, support from coal export is necessary. Once we have stronger currency, then we are likely to decrease the export. Our current government has already said to increase the value added of our coal in the future. Some project has been done for such goal.

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Indonesia's manufacturing exports top US$94 bln

23rd October 2020

Jakarta (ANTARA) - Indonesia’s manufacturing industry recorded US$94.36 billion in exports in January-September this year, contributing 80.5 percent to the country’s total exports for the period.

The last major battle for VN ended in 1989 in Cambodia. Just 30 years after , we already made good own phones, AI cameras, 5G and willing to sell those products worldwide.

Do u think that ID rely too much on natural resources, that's why ID still can't make phones, AI cams, 5G till now eve when ID has much longer peace time than VN ??

U can't stop relying on selling coal now, then u will have Zero chance to compete wt VN phone,AI cams and 5G in the future.
 
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Indos

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The last major battle for VN ended in 1989 in Cambodia. Just 30 years after , we already made good own phones, AI cameras, 5G and willing to sell those products worldwide.

Do u think that ID rely too much on natural resources, that's why ID still can't make phones, AI cams, 5G till now eve when ID has much longer peace time than VN ??

U can't stop relying on selling coal now, then u will have Zero chance to compete wt VN phone,AI cams and 5G in the future.
Bro, you need to make a special thread that show Vietnamese home grown industry which produce high tech products. I have made one for Indonesia and has been a sticky thread.

From there we can compare between Indonesian and Vietnamese high tech home grown industry. And please dont bring foreign company like Samsung to that thread. It should be a local companies thread.
 

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