Indonesia and India are jointly planning a hydrocarbon-powered future

A millennium ago, India’s Chola Kingdom commanded the seas of Southeast Asia, forming deep mercantile and cultural ties with the Indonesian archipelago. The two developed 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 now 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.

It is a reminder that hydrocarbons are still the future of energy.

The need for fossil fuels took center stage when Indian Prime Minister Narendra Modi and Indonesian President Prabowo Subianto met in Jakarta Jul. 7 to forge closer 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.........

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