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.
|
|
Tuesday, 27 October 20
PLN STILL REFUSING TO ADAPT, A MOVE WHICH WILL HURT INVESTORS, CONSUMERS, AND THE GOVERNMENT PURSE - IEEFA
Utility’s latest planning report locks PLN into the past
PLN would be better served restructuring its business to address the current en ...
Monday, 26 October 20
'LONG ASCENT' TO RECOVERY OF GLOBAL GROWTH - BALTIC EXCHANGE
The global economy has so far avoided a “financial catastrophe” but growth projections from the International Monetary Fund’s lat ...
Friday, 23 October 20
SHIPPING LOANS AND COLLATERAL DAMAGE - VICTOR ONYEGBADO, AKABOGU & ASSOCIATES
KNOWLEDGE TO ELEVATE
Shipping finance transactions are characterised by peculiar risk factors principally on account of the shipping asset&rsq ...
Friday, 23 October 20
WHAT WILL THE 2020 ELECTIONS MEAN FOR US ENERGY? - WOOD MACKENZIE
The 2020 elections present American voters with a choice between two radically different visions for the future of energy. President Donald Trump r ...
Wednesday, 21 October 20
BRAZIL EXPORTED 238.7 MLN TONNES OF IRON ORE IN THE FIRST 9 MONTHS OF 2020 - BANCHERO COSTA
Brazil’s iron ore exports have been gradually but steadily recovering following a disastrous winter period of 2019/2020. In the first 9 month ...
|
|
|
Showing 751 to 755 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Standard Chartered Bank - UAE
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- International Coal Ventures Pvt Ltd - India
- Tamil Nadu electricity Board
- Therma Luzon, Inc, Philippines
- Siam City Cement PLC, Thailand
- Parry Sugars Refinery, India
- Neyveli Lignite Corporation Ltd, - India
- Interocean Group of Companies - India
- Chettinad Cement Corporation Ltd - India
- Uttam Galva Steels Limited - India
- Mintek Dendrill Indonesia
- Mercator Lines Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Savvy Resources Ltd - HongKong
- Global Green Power PLC Corporation, Philippines
- Barasentosa Lestari - Indonesia
- San Jose City I Power Corp, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Coal and Oil Company - UAE
- Singapore Mercantile Exchange
- Formosa Plastics Group - Taiwan
- Karaikal Port Pvt Ltd - India
- Global Coal Blending Company Limited - Australia
- Georgia Ports Authority, United States
- European Bulk Services B.V. - Netherlands
- Sarangani Energy Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Vijayanagar Sugar Pvt Ltd - India
- PTC India Limited - India
- Miang Besar Coal Terminal - Indonesia
- Ambuja Cements Ltd - India
- White Energy Company Limited
- Videocon Industries ltd - India
- TeaM Sual Corporation - Philippines
- India Bulls Power Limited - India
- Maheswari Brothers Coal Limited - India
- Bhatia International Limited - India
- Heidelberg Cement - Germany
- IHS Mccloskey Coal Group - USA
- Manunggal Multi Energi - Indonesia
- Meralco Power Generation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- IEA Clean Coal Centre - UK
- PowerSource Philippines DevCo
- Kideco Jaya Agung - Indonesia
- Meenaskhi Energy Private Limited - India
- Price Waterhouse Coopers - Russia
- The State Trading Corporation of India Ltd
- Ministry of Finance - Indonesia
- Latin American Coal - Colombia
- Australian Commodity Traders Exchange
- Trasteel International SA, Italy
- Kalimantan Lumbung Energi - Indonesia
- Central Electricity Authority - India
- Global Business Power Corporation, Philippines
- Romanian Commodities Exchange
- SMG Consultants - Indonesia
- Deloitte Consulting - India
- Ministry of Transport, Egypt
- Goldman Sachs - Singapore
- Dalmia Cement Bharat India
- New Zealand Coal & Carbon
- ASAPP Information Group - India
- PNOC Exploration Corporation - Philippines
- Wilmar Investment Holdings
- Indo Tambangraya Megah - Indonesia
- Posco Energy - South Korea
- Billiton Holdings Pty Ltd - Australia
- Bukit Baiduri Energy - Indonesia
- Coalindo Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- GMR Energy Limited - India
- Borneo Indobara - Indonesia
- Altura Mining Limited, Indonesia
- Rashtriya Ispat Nigam Limited - India
- McConnell Dowell - Australia
- Globalindo Alam Lestari - Indonesia
- LBH Netherlands Bv - Netherlands
- Wood Mackenzie - Singapore
- Sindya Power Generating Company Private Ltd
- Vizag Seaport Private Limited - India
- Indogreen Group - Indonesia
- Bukit Makmur.PT - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Sakthi Sugars Limited - India
- Intertek Mineral Services - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Australian Coal Association
- Metalloyd Limited - United Kingdom
- London Commodity Brokers - England
- Merrill Lynch Commodities Europe
- Salva Resources Pvt Ltd - India
- Indonesian Coal Mining Association
- Grasim Industreis Ltd - India
- Bangladesh Power Developement Board
- Carbofer General Trading SA - India
- Indian Energy Exchange, India
- Jaiprakash Power Ventures ltd
- Eastern Energy - Thailand
- Central Java Power - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Tata Chemicals Ltd - India
- Cement Manufacturers Association - India
- Ceylon Electricity Board - Sri Lanka
- Baramulti Group, Indonesia
- Sical Logistics Limited - India
- Parliament of New Zealand
- Pendopo Energi Batubara - Indonesia
- Straits Asia Resources Limited - Singapore
- The University of Queensland
- Banpu Public Company Limited - Thailand
- Xindia Steels Limited - India
- Leighton Contractors Pty Ltd - Australia
- The Treasury - Australian Government
- Cigading International Bulk Terminal - Indonesia
- Energy Link Ltd, New Zealand
- Ind-Barath Power Infra Limited - India
- Chamber of Mines of South Africa
- Kaltim Prima Coal - Indonesia
- Orica Australia Pty. Ltd.
- Riau Bara Harum - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Simpson Spence & Young - Indonesia
- Sree Jayajothi Cements Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- CNBM International Corporation - China
- OPG Power Generation Pvt Ltd - India
- CIMB Investment Bank - Malaysia
- Independent Power Producers Association of India
- Marubeni Corporation - India
- Africa Commodities Group - South Africa
- Antam Resourcindo - Indonesia
- Thiess Contractors Indonesia
- Jindal Steel & Power Ltd - India
- Anglo American - United Kingdom
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Rio Tinto Coal - Australia
- Minerals Council of Australia
- Port Waratah Coal Services - Australia
- Electricity Generating Authority of Thailand
- Kumho Petrochemical, South Korea
- Karbindo Abesyapradhi - Indoneisa
- Vedanta Resources Plc - India
- Electricity Authority, New Zealand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bhoruka Overseas - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Makarim & Taira - Indonesia
- Semirara Mining Corp, Philippines
- Petron Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Bulk Trading Sa - Switzerland
- Star Paper Mills Limited - India
- Alfred C Toepfer International GmbH - Germany
- Jorong Barutama Greston.PT - Indonesia
- SMC Global Power, Philippines
- Power Finance Corporation Ltd., India
- Renaissance Capital - South Africa
- Mercuria Energy - Indonesia
- Aditya Birla Group - India
- MS Steel International - UAE
- Bharathi Cement Corporation - India
- Maharashtra Electricity Regulatory Commission - India
- Commonwealth Bank - Australia
- Iligan Light & Power Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Economic Council, Georgia
- Planning Commission, India
- VISA Power Limited - India
- Sojitz Corporation - Japan
- Mjunction Services Limited - India
- Oldendorff Carriers - Singapore
- Agrawal Coal Company - India
- Binh Thuan Hamico - Vietnam
- Attock Cement Pakistan Limited
- Krishnapatnam Port Company Ltd. - India
- Gujarat Sidhee Cement - India
- SN Aboitiz Power Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Eastern Coal Council - USA
- Essar Steel Hazira Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Larsen & Toubro Limited - India
- Bhushan Steel Limited - India
- Samtan Co., Ltd - South Korea
- Bahari Cakrawala Sebuku - Indonesia
- Medco Energi Mining Internasional
- Directorate Of Revenue Intelligence - India
- Kepco SPC Power Corporation, Philippines
- Indika Energy - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Asmin Koalindo Tuhup - Indonesia
- South Luzon Thermal Energy Corporation
- Lanco Infratech Ltd - India
- Malabar Cements Ltd - India
- Madhucon Powers Ltd - India
- GAC Shipping (India) Pvt Ltd
- Kohat Cement Company Ltd. - Pakistan
- ICICI Bank Limited - India
- Kapuas Tunggal Persada - Indonesia
- Edison Trading Spa - Italy
- Indian Oil Corporation Limited
- AsiaOL BioFuels Corp., Philippines
- GVK Power & Infra Limited - India
- Ministry of Mines - Canada
- Energy Development Corp, Philippines
- Orica Mining Services - Indonesia
- Kobexindo Tractors - Indoneisa
- Thai Mozambique Logistica
- Kartika Selabumi Mining - Indonesia
- Siam City Cement - Thailand
- Coastal Gujarat Power Limited - India
|
| |
| |
|
