Indonesia and India Are Jointly Planning a Hydrocarbon-Powered Future

By Vijay Jayaraj

A millennium ago, India’s Chola Kingdom commanded the seas of Southeast Asia, forming with the Indonesian archipelago deep mercantile and cultural roots and a shared 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.

India is the world’s most populous nation, 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 in Jakarta to forge deeper economic ties July 7. 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 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 for making 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 largest producers of gas in the world, 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 the intermittent sources of 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.

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.

Originally published at The Hill, August 11, 2026.

Vijay Jayaraj is a Science and Research Associate at the CO2 Coalition, Fairfax, Virginia. He holds an M.S. in environmental sciences from the University of East Anglia and a postgraduate degree in energy management from Robert Gordon University, both in the U.K., and a bachelor’s in engineering from Anna University, India. He served as a research associate with the Changing Oceans Research Unit at University of British Columbia, Canada.

The climate data they don't want you to find — free, to your inbox.
Join readers who get 5–8 new articles daily — no algorithms, no shadow bans.
5 11 votes
Article Rating
18 Comments
Mr.
August 12, 2026 8:45 pm

India population ~ 1.5 billion pax, ~ Indonesia population 2.9 millions pax.

And outgrowing Western countries every year.

Of course they have to be absolutely agnostic about energy sources.

Just like China.

(China has to pretend that wind & solar are useful to the mix though, so they can keep manufacturing & selling that crap to the Gweilo. India and Indonesia don’t have that advantage though.)

Jeff Alberts
Reply to  Mr.
August 13, 2026 8:30 am

Indonesia is 290 million. Not sure what “pax” means.

Mr.
Reply to  Jeff Alberts
August 13, 2026 6:38 pm

people

Mr.
Reply to  Jeff Alberts
August 13, 2026 6:40 pm

yes, sorry for displacing the decimal point.
New glasses needed urgently 🙁

BILLYT
August 12, 2026 8:47 pm

These two countries representing 22% of the worlds people so the proportion of the world interested in this green religion is down to 5%

Rod Evans
August 12, 2026 11:46 pm

When ideology bumps in the ever hard wall of reality, there can only ever be one winner.
Clearly the leaders of the two nations that make up over 20% of world population, realised, if they are going to feed their people they need more than pie in the sky ideas, they need actual pie on the table.

Bruce Cobb
August 13, 2026 1:42 am

So, I’m assuming then that they won’t be attending the Climate Caterwauler’s Party 31 this November. I mean, how can they possibly pretend to care about fake climate change?

Sparta Nova 4
Reply to  Bruce Cobb
August 13, 2026 5:51 am

It would be amusing if they attended as protesters against the climate scam. 🙂

2hotel9
Reply to  Bruce Cobb
August 13, 2026 5:54 am

They will be there for the three Bs, free buffet, booze and bimbos.

Jeff Alberts
Reply to  2hotel9
August 13, 2026 6:03 am

And $Bucks$

2hotel9
Reply to  Jeff Alberts
August 13, 2026 9:01 am

Well, Orangemanbad has cut that hose so they will just have to be happy with the Bs.

Jeff Alberts
Reply to  2hotel9
August 13, 2026 10:42 am

They can still beg from other countries. Perhaps the UK and Aus will gladly send them a few billion, at the expense of their own citizens.

2hotel9
Reply to  Jeff Alberts
August 13, 2026 11:14 am

Both of them are circling the toilet bowl already.

Edward Katz
Reply to  2hotel9
August 13, 2026 2:28 pm

Of course because after a tough day of pretended climate crisis solution negotiations, there has to be some availability for negotiated affection.

2hotel9
Reply to  Edward Katz
August 13, 2026 4:28 pm

“negotiated affection” This is good, gonna shamelessly steal it!

August 13, 2026 7:34 am

I enjoyed reading the above article while being particularly mindful that both India and Indonesia signed the Paris Agreement of 2016 to limit future CO2 emissions from use of fossil fuels.

For reference, India signed the Paris Agreement on April 22, 2016, and subsequently formally ratified the agreement on October 2, 2016. Similarly, Indonesia signed the Paris Agreement on April 22, 2016, and formerly ratified the agreement on October 31, 2016.

Just goes to show the value and “staying power” of international agreements for virtue signaling!

FWIW, according to the UN:
“The Paris Agreement is a legally binding international treaty on climate change. . . . Its overarching goal is to hold ‘the increase in the global average temperature to well below 2°C above pre-industrial levels’ and pursue efforts ‘to limit the temperature increase to 1.5°C above pre-industrial levels’ . . . To limit global warming to 1.5°C, greenhouse gas emissions must peak before 2025 at the latest and decline 43% by 2030.”
source: https://unfccc.int/process-and-meetings/the-paris-agreement , my bold emphasis added.
It is based on the not-supported-by-science hypothesis that CO2 emissions from burning fossil fuels and manufacturing cement are the primary cause of global warming, as well as that there is a climate “tipping point” to occur somewhere between those referenced 1.5/2.0°C increases.

Let’s see . . . yeah, we passed 2025 over 7 months ago . . . uhh oh! 🙁

Anybody take the UN pronouncements seriously any more?

Ron
Reply to  ToldYouSo
August 13, 2026 1:57 pm

“Anybody take the UN pronouncements seriously any more?”

Did anyone ever?

Edward Katz
August 13, 2026 2:22 pm

It’s heartening to see countries the size of India and Indonesia recognizing where realistic solutions to energy problems, economic growth and poverty alleviation lie, and they’re not with green fantasies as in supposedly more advanced nations. Best wishes to their populations which can soon benefit or are already benefiting from these advances.