We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Friday, 04 September 20
IN A DEEPENING DEBT HOLE OF $34 BILLION, INDONESIA’S PLN MUST STOP DIGGING - IEEFA
 The utility has added IDR100 trillion in debt annually for the last five years
Utilities globally started changing the way they do business years ago, but Indonesia’s PLN power company stands out as a laggard, focused on a confused menu of piecemeal generation options rather than holistic planning that provides system-level solutions, finds a new report from IEEFA, the Institute for Energy Economics and Financial Analysis.
PLN, alongside utilities worldwide, has suffered a severe drop in revenue as power consumption fell by as much as 20% in some cases amid the COVID-19 pandemic, writes Elrika Hamdi, author of the report Never Waste a Crisis – Indonesia’s PLN Needs A Coherent Strategy to Ride Out the COVID-19 Pandemic.
“But the roots of PLN’s problems are deeper than just the pandemic: PLN’s quiet crisis reflects dysfunctional planning and governance that have put the company into strategic paralysis, unable to change direction or adapt to new market realities,” says Hamdi.
“Despite all the warning signs, senior managers still run the power sector with an old-fashioned business-as-usual mindset. Unfortunately, a 2010 playbook will not save PLN from falling deeper into a modern-day debt trap. Neither will indulging an extractive economy mindset that fosters dependence on fossil fuel, just because it’s there”.
“There has to be a willingness to ask the hard questions when PLN’s ocean of red ink proclaims that PLN’s resource-driven development plans are obsolete in a high-technology world.”
The report notes that much of PLN’s current predicament stems from a plan to add a massive 35 gigawatts of generation capacity to Indonesia’s power supply that was poorly designed and implemented.
“The 35 GW program is a political promise that was meant to embody President Joko Widodo’s (Jokowi’s) ambition to fully electrify Indonesia. There is nothing wrong with the ambition, but the subsequent planning and execution has lacked accountability,” says Hamdi.
“Adding generation capacity has become a goal with little attention paid to long-term financial impacts or new system design options. In the absence of much-needed checks and balances, PLN has been driven to the brink and taxpayers will be left to pay the price.”
“PLN’s ability to sustain debt at this level rests firmly on Indonesia’s investment-grade sovereign credit rating and the government’s readiness to support PLN debtors in the event of financial distress,” says Hamdi, noting that PLN bonds are still relatively attractive to investors because of the company’s monopoly and its quasi-sovereign status.
The author also questions the accountability of government support for PLN. Noting both direct and indirect supports, including subsidies, compensation, capital injections, special accounting treatments and government guarantees, Hamdi says there appears to be little consistent oversight of how government support is used to dress up PLN’s accounting.
“The Ministry of Finance, considering PLN’s strategic importance, makes PLN a top priority, but that does not mean PLN’s financial problems can be effectively addressed by endless access to cheap debt that could eventually threaten Indonesia’s financial credibility,” she concludes.
“The best strategy for PLN would be to rebase their planning framework to focus on more cost-effective grid investments that improve the long-run efficiency of the whole power system. Private sector players cannot invest in the grid and have therefore crowded into the generation sector. This has accentuated PLN’s narrow focus on baseload generation has resulted in excess capacity and a brittle system that lacks flexibility. What’s needed now is a more grid-centric strategy that would permit PLN’s investment to enable a more efficient system. It is crucial for PLN to make sure that the power sector reform is not just cosmetic.”
About IEEFA
The Institute for Energy Economics and Financial Analysis (IEEFA) conducts global research and analyses on financial and economic issues related to energy and the environment. The Institute’s mission is to accelerate the transition to a diverse, sustainable, and profitable energy economy.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Thursday, 17 December 20
CHINA'S BAN IS LESS OF A THREAT TO AUSTRALIA'S COAL INDUSTRY THAN INTERNATIONAL CLIMATE AMBITION - IEEFA
Australian coal exporters will survive this near-term political fight but there are longterm structural headwinds
The decision by Ch ...
Thursday, 17 December 20
BUMA SIGNED US$1.0 BILLION WORTH OF EXTENSION CONTRACT WITH BERAU COAL
PT Bukit Makmur Mandiri Utama, subsidiary of PT Delta Dunia Makmur Tbk., has extended its mining services contracts with PT Berau Coal, in relation ...
Wednesday, 16 December 20
INDONESIA 2020 COAL CONSUMPTION ESTIMATED AT 140-145 MLN TONNES - OFFICIAL, REUTERS REPORTED
Indonesia’s domestic coal consumption is estimated at 140-145 million tonnes this year, Dodik Ariyanto, an official at the energy ministry, t ...
Wednesday, 16 December 20
RUSSIA REVISES DOWN EXPORT EXPECTATION - FITCH
The Ministry of Economy of Russia, the world’s third largest thermal coal exporting country, released its annual forecasts ...
Wednesday, 16 December 20
INDIAN COAL IMPORTS TO REMAIN SUBDUED - FITCH RATINGS
Fitch Rating commented on Indian Coal Imports, Fitch said, coal imports by Indian utilities fell by about 24% yoy to 44 million tonnes (mt) i ...
|
|
|
Showing 701 to 705 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Globalindo Alam Lestari - Indonesia
- Binh Thuan Hamico - Vietnam
- Samtan Co., Ltd - South Korea
- PNOC Exploration Corporation - Philippines
- Romanian Commodities Exchange
- Electricity Authority, New Zealand
- TeaM Sual Corporation - Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Borneo Indobara - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Madhucon Powers Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Global Coal Blending Company Limited - Australia
- Global Green Power PLC Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Interocean Group of Companies - India
- Gujarat Mineral Development Corp Ltd - India
- Attock Cement Pakistan Limited
- Mintek Dendrill Indonesia
- Lanco Infratech Ltd - India
- Sarangani Energy Corporation, Philippines
- SMG Consultants - Indonesia
- Bhushan Steel Limited - India
- Parliament of New Zealand
- Bulk Trading Sa - Switzerland
- Commonwealth Bank - Australia
- Deloitte Consulting - India
- Krishnapatnam Port Company Ltd. - India
- Renaissance Capital - South Africa
- Siam City Cement PLC, Thailand
- Eastern Energy - Thailand
- Electricity Generating Authority of Thailand
- Thai Mozambique Logistica
- Power Finance Corporation Ltd., India
- Savvy Resources Ltd - HongKong
- Sical Logistics Limited - India
- Antam Resourcindo - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Vedanta Resources Plc - India
- Rashtriya Ispat Nigam Limited - India
- Indo Tambangraya Megah - Indonesia
- Indian Oil Corporation Limited
- Straits Asia Resources Limited - Singapore
- Bhatia International Limited - India
- Leighton Contractors Pty Ltd - Australia
- Kumho Petrochemical, South Korea
- OPG Power Generation Pvt Ltd - India
- Coalindo Energy - Indonesia
- Jindal Steel & Power Ltd - India
- Jaiprakash Power Ventures ltd
- Mercuria Energy - Indonesia
- Makarim & Taira - Indonesia
- Cement Manufacturers Association - India
- Meralco Power Generation, Philippines
- White Energy Company Limited
- CNBM International Corporation - China
- Aditya Birla Group - India
- Latin American Coal - Colombia
- Directorate General of MIneral and Coal - Indonesia
- Baramulti Group, Indonesia
- VISA Power Limited - India
- Star Paper Mills Limited - India
- Gujarat Sidhee Cement - India
- Toyota Tsusho Corporation, Japan
- Eastern Coal Council - USA
- The State Trading Corporation of India Ltd
- AsiaOL BioFuels Corp., Philippines
- Directorate Of Revenue Intelligence - India
- Formosa Plastics Group - Taiwan
- Grasim Industreis Ltd - India
- Indian Energy Exchange, India
- Uttam Galva Steels Limited - India
- Bhoruka Overseas - Indonesia
- Economic Council, Georgia
- Intertek Mineral Services - Indonesia
- Aboitiz Power Corporation - Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sindya Power Generating Company Private Ltd
- Chettinad Cement Corporation Ltd - India
- Agrawal Coal Company - India
- IHS Mccloskey Coal Group - USA
- Coastal Gujarat Power Limited - India
- Port Waratah Coal Services - Australia
- Karbindo Abesyapradhi - Indoneisa
- Heidelberg Cement - Germany
- Karaikal Port Pvt Ltd - India
- Rio Tinto Coal - Australia
- Standard Chartered Bank - UAE
- Parry Sugars Refinery, India
- Malabar Cements Ltd - India
- The Treasury - Australian Government
- Africa Commodities Group - South Africa
- Tamil Nadu electricity Board
- Kepco SPC Power Corporation, Philippines
- McConnell Dowell - Australia
- Bayan Resources Tbk. - Indonesia
- Ministry of Mines - Canada
- Semirara Mining Corp, Philippines
- GAC Shipping (India) Pvt Ltd
- Siam City Cement - Thailand
- ASAPP Information Group - India
- Metalloyd Limited - United Kingdom
- Alfred C Toepfer International GmbH - Germany
- Asmin Koalindo Tuhup - Indonesia
- Sree Jayajothi Cements Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Bangladesh Power Developement Board
- GN Power Mariveles Coal Plant, Philippines
- LBH Netherlands Bv - Netherlands
- Bahari Cakrawala Sebuku - Indonesia
- PowerSource Philippines DevCo
- Indika Energy - Indonesia
- Pendopo Energi Batubara - Indonesia
- Central Electricity Authority - India
- Oldendorff Carriers - Singapore
- Singapore Mercantile Exchange
- Simpson Spence & Young - Indonesia
- GMR Energy Limited - India
- Tata Chemicals Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Vizag Seaport Private Limited - India
- Bukit Baiduri Energy - Indonesia
- Iligan Light & Power Inc, Philippines
- Chamber of Mines of South Africa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Thiess Contractors Indonesia
- Cigading International Bulk Terminal - Indonesia
- The University of Queensland
- MS Steel International - UAE
- San Jose City I Power Corp, Philippines
- Meenaskhi Energy Private Limited - India
- Bharathi Cement Corporation - India
- Ambuja Cements Ltd - India
- SN Aboitiz Power Inc, Philippines
- India Bulls Power Limited - India
- Maheswari Brothers Coal Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Anglo American - United Kingdom
- Ceylon Electricity Board - Sri Lanka
- Independent Power Producers Association of India
- Kideco Jaya Agung - Indonesia
- Energy Link Ltd, New Zealand
- Essar Steel Hazira Ltd - India
- Xindia Steels Limited - India
- International Coal Ventures Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Ministry of Transport, Egypt
- Jorong Barutama Greston.PT - Indonesia
- IEA Clean Coal Centre - UK
- Banpu Public Company Limited - Thailand
- Sakthi Sugars Limited - India
- Altura Mining Limited, Indonesia
- Billiton Holdings Pty Ltd - Australia
- Salva Resources Pvt Ltd - India
- Global Business Power Corporation, Philippines
- PTC India Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- CIMB Investment Bank - Malaysia
- Posco Energy - South Korea
- Ministry of Finance - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Central Java Power - Indonesia
- Orica Australia Pty. Ltd.
- London Commodity Brokers - England
- Coal and Oil Company - UAE
- Larsen & Toubro Limited - India
- Australian Coal Association
- Ind-Barath Power Infra Limited - India
- South Luzon Thermal Energy Corporation
- Indonesian Coal Mining Association
- PetroVietnam Power Coal Import and Supply Company
- Riau Bara Harum - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Energy Development Corp, Philippines
- Semirara Mining and Power Corporation, Philippines
- GVK Power & Infra Limited - India
- European Bulk Services B.V. - Netherlands
- Kohat Cement Company Ltd. - Pakistan
- Mercator Lines Limited - India
- Orica Mining Services - Indonesia
- Kartika Selabumi Mining - Indonesia
- Trasteel International SA, Italy
- Minerals Council of Australia
- Kobexindo Tractors - Indoneisa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Edison Trading Spa - Italy
- Manunggal Multi Energi - Indonesia
- Kaltim Prima Coal - Indonesia
- Wood Mackenzie - Singapore
- Goldman Sachs - Singapore
- Wilmar Investment Holdings
- Therma Luzon, Inc, Philippines
- Barasentosa Lestari - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Dalmia Cement Bharat India
- Marubeni Corporation - India
- Medco Energi Mining Internasional
- Timah Investasi Mineral - Indoneisa
- Planning Commission, India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Petron Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Australian Commodity Traders Exchange
- Sojitz Corporation - Japan
- Carbofer General Trading SA - India
- Merrill Lynch Commodities Europe
- Sinarmas Energy and Mining - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Indogreen Group - Indonesia
- New Zealand Coal & Carbon
- Price Waterhouse Coopers - Russia
- SMC Global Power, Philippines
- Mjunction Services Limited - India
- Videocon Industries ltd - India
- Georgia Ports Authority, United States
- ICICI Bank Limited - India
|
| |
| |
|
