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.

Economic ties

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 on 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.