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India And Indonesia Double Down On Fossil Fuels, Reject Green Dogma For Growth

The two countries are expanding energy ties built on coal, oil and natural gas.

by Vijay Jayaraj
August 13, 2026, 2:19 PM
in Energy, Money & Finance, News and Opinion, Politics
Reading Time: 3 mins read
A A
10

indonesian port india coal ship
A millennium ago, India’s Chola Kingdom commanded the seas of Southeast Asia, [establishing deep mercantile and cultural ties with the Indonesian archipelago and sharing] a common economic destiny that lasted for hundreds of years. In the 21st century, these two giants are again engaging in complementary roles on the global stage. [some emphasis, links added]

India is the world’s most populous country, and Indonesia the fourth. Together, they represent 1.8 billion people intent on basic survival, industrial growth, and ascending the global economic ladder.

Both countries are moving deeper into manufacturing, and both must serve an upwardly mobile middle class. That means more electricity, more refined fuels, more petrochemicals, more steel, more freight, and more industrial heat.

It also means more coal, oil, gas, and nuclear power – energy sources that can deliver reliable, affordable power.

The need for fossil fuels took center stage when Indian Prime Minister Narendra Modi and Indonesian President Prabowo Subianto met on July 7 in Jakarta to forge deeper economic ties.

At the top of their agenda sat a massive expansion of energy trade and an Indian request for more Indonesian coal to feed a ravenous power grid.

This is a logical arrangement in a fast-growing industrial relationship. Bilateral trade has grown more than fivefold since 2005, from less than $5 billion to nearly $25 billion.

india coal mining
India is Indonesia’s second-largest coal buyer and largest importer of crude palm oil.

India remains Indonesia’s second-largest buyer of coal and the biggest importer of Indonesian crude palm oil, while also sourcing minerals, rubber, hydrocarbons, pulp, and paper. In return, India supplies refined petroleum products, vehicles, telecom equipment, steel products, and agricultural goods.

The Steel Authority of India and Indonesia’s Krakatau Steel just agreed to a joint venture to make stainless steel in Indonesia. Around 90% of India’s primary steel output still depends on coal. Indonesia’s steel industry is similarly coal-dependent, with almost 80% of production relying on the fuel.

Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia reported that India has expressed interest in participating in Indonesia’s oil and gas sector.

Once one of the world’s largest gas producers, Indonesia recently awarded multiple exploration contracts to international oil firms.

The two governments discussed cooperating on peaceful nuclear projects. Like fossil fuels, nuclear power offers dependable baseload electricity that intermittent solar and wind cannot match.

Both sides also signed multiple agreements on critical minerals and supply chain technology, medical product regulation, disaster management, telecommunications, and agriculture.

Rejecting Green Dogma, Tackling Energy Poverty

Recent rolling blackouts in Sumatra and Java exposed severe vulnerabilities in the national electricity system. State utility PLN openly admitted that constrained coal supplies were responsible for Java’s crippling outages.

It is impossible to grow a manufacturing hub on solar and wind, which are subject to the whims of weather.

Indonesia delays retiring coal-fired power plants, focusing more on expanding fossil-fuel use.

Faced with the catastrophe of energy starvation, Indonesia is rejecting green propaganda. Jakarta delayed its timeline for retiring coal-fired power plants. In December 2025, the government quietly but firmly abandoned plans to close the Cirebon-1 plant.

India finds itself in the same boat and makes equally rational choices. Coal continues to generate nearly 80% of the country’s power.

When severe weather devastated hydroelectric facilities across the subcontinent this year, India turned to coal as a substitute. India’s heavy reliance on coal is projected to continue well beyond 2047.

In a declaration of energy sovereignty, India withdrew a bid to host the 2028 United Nations climate summit. No amount of U.N.-inspired fearmongering will deter the mission to secure affordable energy for the Indian populace.

The India-Indonesia trade relationship is dismissing the apocalyptic fantasy of the climate industrial complex and committing to secure the energy sources that people need to improve their lives.

Read more at CO2 Coalition

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Comments 10

  1. Richard Greene says:
    3 weeks ago

    As of 2026, wind and solar energy combined account for roughly 5% to 6% of India’s total primary energy consumption, compared to less than 1% a decade ago (2016)

    Indonesia’s combined primary energy from wind and solar stands at roughly 0.57% today, compared to virtually 0% ten years ago

    Reply
    • Steve Bunten says:
      3 weeks ago

      And how do these meaningless facts have anything to do with the article. 5-6% and 0.57% energy derived from useless sources while the vast majority is coming from fossil fuels.

      Reply
      • Richard Greene says:
        3 weeks ago

        India And Indonesia Double Down On Fossil Fuels, Reject Green Dogma For Growth”

        The title implies India & Indonesia were interested in green energy, but in fact Indonesia was never interested & India never had much interest. The article implies there has been a big change in attitudes, but there are no data to show anything has changed

        Reply
    • b.nice says:
      3 weeks ago

      And totally wrong to boot

      Solar provided about 1.5% of India’s 2025 energy use and wind less than 1%

      https://ourworldindata.org/energy-mix

      Reply
      • Steve Bunten says:
        3 weeks ago

        Don’t expect Greene to actually reply. He posts nonsense but never replies to anybody who rebuts his nonsense.

        Reply
      • Richard Greene says:
        3 weeks ago

        Primary Energy Share: Wind, solar, and other new renewables combine to supply roughly 6.1% of India’s total primary commercial energy, with wind and solar driving the vast majority of that share.

        Reply
        • Guy Liardet says:
          3 weeks ago

          Do you mean electricity generation?

          Reply
    • Thomas Richard says:
      2 weeks ago

      Yes, wind and solar have grown rapidly from a very tiny base in both countries. That doesn’t contradict the article. India still gets roughly 87% of its primary energy from fossil fuels, while coal alone generates about 73% of its electricity.
      Indonesia likewise remains overwhelmingly dependent on coal, oil and natural gas. India is simultaneously expanding solar and planning major increases in coal production. Growing renewables and growing fossil-fuel consumption aren’t mutually exclusive when energy demand is growing rapidly.
      One type of energy (wind and solar) is intermittent and unreliable. The other type (fossil fuels) isn’t.

      Reply
  2. ddwieland says:
    3 weeks ago

    Now if only Western countries could regain an understanding of reality and abandon the self defeating anti-hydrocarbon dogma. The green zealots must be opposed to return sanity, but unfortunately the indoctrination has been deep and includes some national leaders.

    Reply
    • Steve Bunten says:
      3 weeks ago

      It’s not just western countries but the blue states in the US are continue to push NetZero. Here in Colorado it is the law that we must go to NetZero with absolutely no idea how the utilities are going to accomplish it although our largest utility, Xcel Energy, still seems to pretend that they can do it, but some things I’ve read from them was buying electricity from surrounding states, all but one (New Mexico) are red states who don’t plan to sabotage their industries and citizens with only “green” energy.

      Reply

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