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Friday, 19 June 15
INDONESIA'S COAL-TRAFFICKING PROBLEM REQUIRES IMPARTIAL INQUIRY - JAKARTA GLOBE
 Indonesia, the leading supplier to the seaborne thermal coal market, produces 420 million tons of coal per year, according to its official tally.
But the unofficial tally is much higher.
It’s an open secret, in fact, that millions of tons of Indonesian coal are being mined and shipped out of the country illegally. Last year at the Coaltrans Asia conference in Bali, R. Sukhyar, the minerals and coal director at Indonesia’s Energy and Mineral Resources Ministry, estimated such shipments totaled 50 million tons to 60 million tons annually. Other estimates put annual illegal shipments as high as 90 million tons, worth some $5 billion.
Whatever the exact amount, the government of Indonesia is losing hundreds of millions in royalty revenues each year on these illegal exports. Coal royalties are important to the fiscal health of the country — they account for $4 billion of the Indonesian national budget of $170 billion this year — and government services suffer when royalty programs aren’t rigorously enforced.
Indonesia, of course, is an important global supplier of coal. More than 80 percent of its annual production is exported, mostly to India, Japan, South Korea and India, and its coal exports — both legal and illegal — affect global markets. Illegal exports create a special, pernicious effect on the coal industry as a whole by undermining efforts to manage supply and rebalance prices.
Coal markets today are shrinking rapidly. The price of coal in the Asian seaborne market has dropped by about 50 percent since 2011. The industry is oversupplied and likely to remain so for the foreseeable future. Illegal exports only exacerbate that challenge.
Epidemic of illegal shipping
The country’s process of licensing, customs and royalty collection maintains the official tally of annual coal production. But neither ports nor coal-transfer system are as tightly controlled as they should be. Opportunity abounds for producers to escape regulation. Much of the avoidance happens in Indonesia’s network of small private and unmonitored ports, and much of it occurs at offshore transfer points that are difficult to monitor.
The problem stems from the roaring days of global coal market expansion during the mid-2000s, when Indonesia saw a huge number of new companies, new permits and news investment in coal production.
Indonesian coal production skyrocketed to 420 million tons in 2013 from 174 million tons in 2006 in a difficult-to-manage boom that helped evasive companies get away with either ignoring reporting requirements altogether or simply under-reporting their coal production.
The government is raising coal-royalty rates in a move that will only magnify the competitive advantage royalty-avoiding producers hold over reputable companies that follow production- and export-reporting requirements. Thankfully, Indonesia’s illegal coal-export activity is under growing scrutiny today, although recent central government efforts at various reforms have done little so far to actually reduce illegal shipments.
Indonesian leaders seem well aware that unreported or under-reported exports undermine broader policy objectives of improving national energy security, providing sound management of Indonesia’s finite natural resources, having effective border control and showing leadership in international trade management.
Yet it’s unlikely the government will succeed on its own. Illegal coal mining and shipping is embedded in the economic fabric of Indonesia. Financially powerful interests support the status quo. Unreported or underreported activity has become a crucial source of revenue for regional political interests, and even the Indonesian Coal Mining Association (APBI) says it finds little to support in reform proposals. The drive to police illegal production and trafficking is also stymied by deeply endemic government corruption.
No level playing field
Indonesia and its people are currently being shortchanged by the absence of a business climate committed to a level playing field across its coal industry. Reform is in the national interest — and it makes good business sense, too, because it would tighten up the seaborne coal markets and provide some price stability for Indonesia’s largest source of export revenue.
When corruption is as pervasive as it is today in Indonesia’s coal industry, it is difficult to maintain a national effort to reform it. This is not an uncommon challenge, and is often best addressed by outside parties invited by the authorities to observe, report and enforce change. Reputable business, governmental and judicial officials are often brought in to help companies or countries find the right long-term path toward restoring confidence where confidence has been lost.
Many mechanisms exist to empower an independent organization with the authority to act. An external investigation of illegal coal shipping in Indonesia could go a long way to establishing a strong basis for establishing honest reform.
By Tom Sanzillo
About Tom Sanzillo
Tom Sanzillo is the director of finance at the Institute for Energy Economics and Financial Analysis (IEEFA), which promotes research into global energy markets. Sanzillo has 30 years of experience in public and private finance, including as a first deputy comptroller of New York State, where he held oversight over a $156 billion pension fund and $200 billion in municipal bond programs.
Source: The Jakarta Globe
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Wednesday, 12 June 24
CHINA ACCOUNTS FOR 16.3% OF AUSTRALIA'S COAL EXPORTS, FOLLOWED BY INDIA 14.4% - BANCHERO COSTA
Global coal trade has really picked up pace in recent months, and is now fully back to pre-Covid levels says Banchero Costa in its latest report.
...
Wednesday, 12 June 24
LNG NEWBUILDING VALUES AT RECORD HIGH: 78 NEWBUILD ORDERS PLACED IN 2024, DOUBLING 2023 - VESON NAUTICAL
The number of LNG newbuilding orders have more than doubled from the same period last year where 34 orders were placed, compared to 78 in the first ...
Monday, 10 June 24
CHINA'S MAY COAL IMPORTS RISE 11% ON LOWER DOMESTIC OUTPUT - REUTERS
China’s imports of coal rose 11% in May from a year earlier, customs data and Reuters records showed on Friday, as lower domestic output this ...
Tuesday, 04 June 24
HOW DO WESTERN SANCTIONS ON RUSSIA IMPACT THE GLOBAL METALS, MINING AND COAL MARKETS - WOOD MACKENZIE
The geopolitical landscape for Russia, as a major supplier of various commodities, has undergone a dramatic transformation since the invasion of Uk ...
Friday, 22 March 24
CASE STUDY: DANGERS OF COAL CARGO - SKULD
Recently, a bulk cargo vessel carrying coal from South Africa to Singapore suffered a fatal accident, resulting in the deaths of three crew members ...
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Showing 21 to 25 news of total 6871 |
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- Petron Corporation, Philippines
- Kumho Petrochemical, South Korea
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Bukit Asam (Persero) Tbk - Indonesia
- Anglo American - United Kingdom
- Coastal Gujarat Power Limited - India
- Coalindo Energy - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Heidelberg Cement - Germany
- ICICI Bank Limited - India
- Star Paper Mills Limited - India
- Sojitz Corporation - Japan
- Agrawal Coal Company - India
- Bulk Trading Sa - Switzerland
- Orica Mining Services - Indonesia
- Medco Energi Mining Internasional
- Kepco SPC Power Corporation, Philippines
- Indonesian Coal Mining Association
- Edison Trading Spa - Italy
- Timah Investasi Mineral - Indoneisa
- IHS Mccloskey Coal Group - USA
- Singapore Mercantile Exchange
- Power Finance Corporation Ltd., India
- Mercator Lines Limited - India
- Directorate Of Revenue Intelligence - India
- Billiton Holdings Pty Ltd - Australia
- Global Coal Blending Company Limited - Australia
- Goldman Sachs - Singapore
- International Coal Ventures Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- New Zealand Coal & Carbon
- Africa Commodities Group - South Africa
- Semirara Mining Corp, Philippines
- Attock Cement Pakistan Limited
- Holcim Trading Pte Ltd - Singapore
- Xindia Steels Limited - India
- SN Aboitiz Power Inc, Philippines
- Rio Tinto Coal - Australia
- Lanco Infratech Ltd - India
- Deloitte Consulting - India
- Energy Link Ltd, New Zealand
- Mintek Dendrill Indonesia
- Banpu Public Company Limited - Thailand
- Formosa Plastics Group - Taiwan
- Eastern Energy - Thailand
- McConnell Dowell - Australia
- Planning Commission, India
- Malabar Cements Ltd - India
- Wood Mackenzie - Singapore
- Simpson Spence & Young - Indonesia
- Commonwealth Bank - Australia
- GN Power Mariveles Coal Plant, Philippines
- Standard Chartered Bank - UAE
- Bahari Cakrawala Sebuku - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Oldendorff Carriers - Singapore
- Central Java Power - Indonesia
- Maheswari Brothers Coal Limited - India
- European Bulk Services B.V. - Netherlands
- Marubeni Corporation - India
- Romanian Commodities Exchange
- Borneo Indobara - Indonesia
- Renaissance Capital - South Africa
- Samtan Co., Ltd - South Korea
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PowerSource Philippines DevCo
- Iligan Light & Power Inc, Philippines
- Vizag Seaport Private Limited - India
- VISA Power Limited - India
- GMR Energy Limited - India
- Sree Jayajothi Cements Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Barasentosa Lestari - Indonesia
- Intertek Mineral Services - Indonesia
- Sakthi Sugars Limited - India
- Dalmia Cement Bharat India
- Gujarat Electricity Regulatory Commission - India
- Ind-Barath Power Infra Limited - India
- Australian Commodity Traders Exchange
- SMG Consultants - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Indian Energy Exchange, India
- Bangladesh Power Developement Board
- Central Electricity Authority - India
- Indo Tambangraya Megah - Indonesia
- Parliament of New Zealand
- Makarim & Taira - Indonesia
- Mercuria Energy - Indonesia
- White Energy Company Limited
- Krishnapatnam Port Company Ltd. - India
- MS Steel International - UAE
- London Commodity Brokers - England
- South Luzon Thermal Energy Corporation
- Siam City Cement PLC, Thailand
- The State Trading Corporation of India Ltd
- Bharathi Cement Corporation - India
- India Bulls Power Limited - India
- Jindal Steel & Power Ltd - India
- Kartika Selabumi Mining - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- The University of Queensland
- Ministry of Finance - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Thiess Contractors Indonesia
- Economic Council, Georgia
- Chettinad Cement Corporation Ltd - India
- San Jose City I Power Corp, Philippines
- OPG Power Generation Pvt Ltd - India
- Siam City Cement - Thailand
- Bhoruka Overseas - Indonesia
- CNBM International Corporation - China
- Minerals Council of Australia
- Essar Steel Hazira Ltd - India
- Larsen & Toubro Limited - India
- ASAPP Information Group - India
- Tamil Nadu electricity Board
- Kapuas Tunggal Persada - Indonesia
- Meralco Power Generation, Philippines
- Trasteel International SA, Italy
- Ministry of Transport, Egypt
- Thai Mozambique Logistica
- Rashtriya Ispat Nigam Limited - India
- Electricity Authority, New Zealand
- Antam Resourcindo - Indonesia
- Bhatia International Limited - India
- Straits Asia Resources Limited - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Toyota Tsusho Corporation, Japan
- Directorate General of MIneral and Coal - Indonesia
- Aditya Birla Group - India
- Global Business Power Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Gujarat Sidhee Cement - India
- Karaikal Port Pvt Ltd - India
- The Treasury - Australian Government
- Grasim Industreis Ltd - India
- Independent Power Producers Association of India
- Cigading International Bulk Terminal - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Indian Oil Corporation Limited
- Sinarmas Energy and Mining - Indonesia
- Mjunction Services Limited - India
- Ministry of Mines - Canada
- Latin American Coal - Colombia
- Sindya Power Generating Company Private Ltd
- Merrill Lynch Commodities Europe
- Binh Thuan Hamico - Vietnam
- Metalloyd Limited - United Kingdom
- Therma Luzon, Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Aboitiz Power Corporation - Philippines
- Orica Australia Pty. Ltd.
- CIMB Investment Bank - Malaysia
- Kideco Jaya Agung - Indonesia
- Eastern Coal Council - USA
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- PNOC Exploration Corporation - Philippines
- Pendopo Energi Batubara - Indonesia
- Tata Chemicals Ltd - India
- Electricity Generating Authority of Thailand
- Savvy Resources Ltd - HongKong
- Sarangani Energy Corporation, Philippines
- Videocon Industries ltd - India
- Interocean Group of Companies - India
- Parry Sugars Refinery, India
- Georgia Ports Authority, United States
- IEA Clean Coal Centre - UK
- Uttam Galva Steels Limited - India
- Price Waterhouse Coopers - Russia
- Jaiprakash Power Ventures ltd
- Cement Manufacturers Association - India
- GVK Power & Infra Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bhushan Steel Limited - India
- Riau Bara Harum - Indonesia
- Indika Energy - Indonesia
- Energy Development Corp, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Vedanta Resources Plc - India
- SMC Global Power, Philippines
- Bukit Baiduri Energy - Indonesia
- Ambuja Cements Ltd - India
- Indogreen Group - Indonesia
- Salva Resources Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Carbofer General Trading SA - India
- Globalindo Alam Lestari - Indonesia
- GAC Shipping (India) Pvt Ltd
- Meenaskhi Energy Private Limited - India
- Posco Energy - South Korea
- Alfred C Toepfer International GmbH - Germany
- Altura Mining Limited, Indonesia
- Australian Coal Association
- TeaM Sual Corporation - Philippines
- PTC India Limited - India
- Chamber of Mines of South Africa
- Manunggal Multi Energi - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Semirara Mining and Power Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Baramulti Group, Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Jorong Barutama Greston.PT - Indonesia
- Sical Logistics Limited - India
- Madhucon Powers Ltd - India
- LBH Netherlands Bv - Netherlands
- Wilmar Investment Holdings
- Bukit Makmur.PT - Indonesia
- Bayan Resources Tbk. - Indonesia
- Global Green Power PLC Corporation, Philippines
- Coal and Oil Company - UAE
- Port Waratah Coal Services - Australia
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