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, 06 August 20
SUPRAMAX MARKET CONTINUED SIDEWAYS TREND, AND LITTLE INSPIRING NEWS APPEAR - FEARNLEYS
Capesize
There is presently a small correction in rates, but overall levels are up from previous week mainly due to increased demand in the Eas ...
Thursday, 06 August 20
KOREA SOUTH-EAST POWER INVITING BIDS FOR MIN 3,600-MAX 3,800 NCV COAL
COALspot.com: South Korea’s KOREA SOUTH-EAST POWER CO., LTD. (KOEN) inviting bids for 80,000 Tons (MT) Min 3,600~Max 3,800 kcal/kg NCV coal f ...
Wednesday, 05 August 20
NO NEW MINING LICENSES - A REMINDER TO GOVERNORS IN INDONESIA - SSEK
Indonesia’s acting Director General of Mining and Coal (“DGMC”) has issued a letter to the country’s provincial Governors t ...
Wednesday, 05 August 20
AUGUST 2020 HBA HITTING ITS LOWEST LEVELS IN HISTORY
COALspot.com: The Indonesia Coal Price Reference for the month of August plunged 30.73% YoY, hitting its lowest levels in history and highlighting ...
Wednesday, 05 August 20
SLUMP IN OIL REVENUE CHALLENGES MIDDLE EAST OIL EXPORTERS - INTERMODAL
The Covid-19 pandemic has had far-reaching consequences on the global capital markets. Despite the US government’s efforts for a quick and de ...
|
|
|
Showing 841 to 845 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Tamil Nadu electricity Board
- Dalmia Cement Bharat India
- Central Electricity Authority - India
- Bhatia International Limited - India
- Manunggal Multi Energi - Indonesia
- Indonesian Coal Mining Association
- The State Trading Corporation of India Ltd
- Siam City Cement - Thailand
- Sakthi Sugars Limited - India
- Merrill Lynch Commodities Europe
- Siam City Cement PLC, Thailand
- Banpu Public Company Limited - Thailand
- South Luzon Thermal Energy Corporation
- Marubeni Corporation - India
- ICICI Bank Limited - India
- GAC Shipping (India) Pvt Ltd
- Indian Energy Exchange, India
- Gujarat Electricity Regulatory Commission - India
- Carbofer General Trading SA - India
- CNBM International Corporation - China
- GN Power Mariveles Coal Plant, Philippines
- Standard Chartered Bank - UAE
- Vedanta Resources Plc - India
- Wilmar Investment Holdings
- Central Java Power - Indonesia
- Kaltim Prima Coal - Indonesia
- Grasim Industreis Ltd - India
- Sarangani Energy Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Baramulti Group, Indonesia
- Goldman Sachs - Singapore
- Agrawal Coal Company - India
- Economic Council, Georgia
- Salva Resources Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- GMR Energy Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Kobexindo Tractors - Indoneisa
- Planning Commission, India
- Aditya Birla Group - India
- Kepco SPC Power Corporation, Philippines
- Vizag Seaport Private Limited - India
- Straits Asia Resources Limited - Singapore
- Edison Trading Spa - Italy
- Ministry of Mines - Canada
- Bharathi Cement Corporation - India
- Heidelberg Cement - Germany
- Energy Development Corp, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Directorate Of Revenue Intelligence - India
- Malabar Cements Ltd - India
- Bhoruka Overseas - Indonesia
- Coalindo Energy - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Jaiprakash Power Ventures ltd
- Aboitiz Power Corporation - Philippines
- Sinarmas Energy and Mining - Indonesia
- Oldendorff Carriers - Singapore
- Jindal Steel & Power Ltd - India
- European Bulk Services B.V. - Netherlands
- Deloitte Consulting - India
- Meenaskhi Energy Private Limited - India
- Rio Tinto Coal - Australia
- Intertek Mineral Services - Indonesia
- Ministry of Transport, Egypt
- Chamber of Mines of South Africa
- Wood Mackenzie - Singapore
- Singapore Mercantile Exchange
- Orica Mining Services - Indonesia
- Ind-Barath Power Infra Limited - India
- Tata Chemicals Ltd - India
- Bulk Trading Sa - Switzerland
- Alfred C Toepfer International GmbH - Germany
- Sindya Power Generating Company Private Ltd
- PTC India Limited - India
- The Treasury - Australian Government
- Australian Coal Association
- Thai Mozambique Logistica
- Kohat Cement Company Ltd. - Pakistan
- Sical Logistics Limited - India
- Madhucon Powers Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- PNOC Exploration Corporation - Philippines
- Xindia Steels Limited - India
- Global Green Power PLC Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- The University of Queensland
- Bhushan Steel Limited - India
- Miang Besar Coal Terminal - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Orica Australia Pty. Ltd.
- Kalimantan Lumbung Energi - Indonesia
- Georgia Ports Authority, United States
- Port Waratah Coal Services - Australia
- Karbindo Abesyapradhi - Indoneisa
- Kapuas Tunggal Persada - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Renaissance Capital - South Africa
- Minerals Council of Australia
- CIMB Investment Bank - Malaysia
- New Zealand Coal & Carbon
- Borneo Indobara - Indonesia
- Globalindo Alam Lestari - Indonesia
- Posco Energy - South Korea
- Global Coal Blending Company Limited - Australia
- Kideco Jaya Agung - Indonesia
- Indogreen Group - Indonesia
- GVK Power & Infra Limited - India
- Leighton Contractors Pty Ltd - Australia
- AsiaOL BioFuels Corp., Philippines
- Parliament of New Zealand
- Chettinad Cement Corporation Ltd - India
- Anglo American - United Kingdom
- Electricity Authority, New Zealand
- Riau Bara Harum - Indonesia
- Bukit Makmur.PT - Indonesia
- Attock Cement Pakistan Limited
- PowerSource Philippines DevCo
- Therma Luzon, Inc, Philippines
- Commonwealth Bank - Australia
- Makarim & Taira - Indonesia
- SMG Consultants - Indonesia
- Sojitz Corporation - Japan
- Gujarat Sidhee Cement - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- IHS Mccloskey Coal Group - USA
- Petrochimia International Co. Ltd.- Taiwan
- Eastern Coal Council - USA
- Essar Steel Hazira Ltd - India
- Electricity Generating Authority of Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Savvy Resources Ltd - HongKong
- Metalloyd Limited - United Kingdom
- Lanco Infratech Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Mercuria Energy - Indonesia
- Antam Resourcindo - Indonesia
- Parry Sugars Refinery, India
- Directorate General of MIneral and Coal - Indonesia
- Power Finance Corporation Ltd., India
- Meralco Power Generation, Philippines
- VISA Power Limited - India
- OPG Power Generation Pvt Ltd - India
- MS Steel International - UAE
- Independent Power Producers Association of India
- Holcim Trading Pte Ltd - Singapore
- Mercator Lines Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Coastal Gujarat Power Limited - India
- IEA Clean Coal Centre - UK
- Petron Corporation, Philippines
- Indika Energy - Indonesia
- Trasteel International SA, Italy
- Ministry of Finance - Indonesia
- Indo Tambangraya Megah - Indonesia
- San Jose City I Power Corp, Philippines
- Simpson Spence & Young - Indonesia
- Karaikal Port Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Interocean Group of Companies - India
- International Coal Ventures Pvt Ltd - India
- Thiess Contractors Indonesia
- Timah Investasi Mineral - Indoneisa
- Cigading International Bulk Terminal - Indonesia
- Energy Link Ltd, New Zealand
- McConnell Dowell - Australia
- Eastern Energy - Thailand
- TeaM Sual Corporation - Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Semirara Mining Corp, Philippines
- Iligan Light & Power Inc, Philippines
- Barasentosa Lestari - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Formosa Plastics Group - Taiwan
- SMC Global Power, Philippines
- Bangladesh Power Developement Board
- Romanian Commodities Exchange
- London Commodity Brokers - England
- Bayan Resources Tbk. - Indonesia
- Pendopo Energi Batubara - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Coal and Oil Company - UAE
- Samtan Co., Ltd - South Korea
- Uttam Galva Steels Limited - India
- LBH Netherlands Bv - Netherlands
- Billiton Holdings Pty Ltd - Australia
- Ambuja Cements Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- India Bulls Power Limited - India
- Kumho Petrochemical, South Korea
- Kartika Selabumi Mining - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Altura Mining Limited, Indonesia
- Star Paper Mills Limited - India
- Price Waterhouse Coopers - Russia
- Medco Energi Mining Internasional
- Larsen & Toubro Limited - India
- SN Aboitiz Power Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Toyota Tsusho Corporation, Japan
- Cement Manufacturers Association - India
- Australian Commodity Traders Exchange
- Vijayanagar Sugar Pvt Ltd - India
- Mjunction Services Limited - India
- Africa Commodities Group - South Africa
- ASAPP Information Group - India
- Latin American Coal - Colombia
- White Energy Company Limited
- Mintek Dendrill Indonesia
- Global Business Power Corporation, Philippines
- Indian Oil Corporation Limited
- Binh Thuan Hamico - Vietnam
- Videocon Industries ltd - India
|
| |
| |
|
