MoU signed to explore investment opportunities.
India and Indonesia are to cooperate in the oil & gas field as well as invest in energy facilities on bilateral basis under a Memorandum of Understanding (MoU) signed in Jakarta on 20 April 2017.
The MoU seeks to establish a cooperative institutional framework to facilitate and to enhance bilateral cooperation in oil & gas sectors on the basis of equality and mutual benefit.
It was signed by Indonesia’s Energy and Mineral Resources Ministry and Ministry of Petroleum and Natural Gas during Minister of State for Power, Coal, New & Renewable Energy and Mines, Piyush Goyal’s visit for the 1st “India Indonesia Energy Forum” held in Jakarta.
The Indian and Indonesian energy officials 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.
Indonesian expertise will be used in gasification of fuel oil, exploration of oil, gas and coal fields in India.
India is third largest importer of coal from Indonesia, which amounted to US$3.5 billion in 2016. Severeal Indian companies have invested in Indonesian coal mines.
The bilateral trade between two countries stood at US$15.9 billion in 2015-16 with Indonesian exports accounting for US$13.06 billion.
There is an agreed understanding on both sides to increase Indian exports to Indonesia to improve the trade balance. India’s 2015-16 export was US$2.84 billion.
Indonesia’s Energy and Mineral Resources Minister Ignasius Jonan is to lead a business delegation to India as a follow up. fii-news.com
