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.
|
|
Wednesday, 19 August 20
MISC MARKS ITS MAIDEN FORAY INTO MAJOR DEEP-WATER PROJECT IN LATIN AMERICA WITH MERO 3 FPSO
MISC Berhad (MISC) is pleased to announce its acceptance of Letter of Intent (LOI) from Petróleo Brasileiro S.A. (Petrobras) for the provisi ...
Wednesday, 19 August 20
MARKET INSIGHT - GEORGE LAIOS | INTERMODAL
Since the Covid-19 outbreak, governments and central banks around the globe have been using their ammunition and stimulus packages to keep their ec ...
Wednesday, 19 August 20
INDIA SAW A SHARP DECLINE IN ENERGY COAL IMPORTS IN JANUARY - JUNE 2020; –27 PER CENT YOY - BHP
Energy coal prices were weak in the second half of financial year 2020, BHP says in its Economic and Commodity Outlook FY20.
Accordi ...
Wednesday, 19 August 20
COAL PRICES TO REMAIN SUBDUED THIS FISCAL AMID WEAK DEMAND, HIGH INVENTORY - THE HINDU BUSINESS LINE
Coal offtake is improving gradually as lockdown eases
Coal prices are expected to remain subdued to weak demand and high inventory l ...
Tuesday, 18 August 20
BLACKBALLED: WILL COAL BOUNCE BACK FROM SLUMP OR IS IT TERMINAL? - SYDNEY MORNING HERALD
Even by the standards of this miserable year, 2020 has been a shocker for the global coal industry.
As the lockdown kicked in demand ...
|
|
|
Showing 826 to 830 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Bharathi Cement Corporation - India
- Bayan Resources Tbk. - Indonesia
- Indonesian Coal Mining Association
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Edison Trading Spa - Italy
- Agrawal Coal Company - India
- Wilmar Investment Holdings
- Sical Logistics Limited - India
- OPG Power Generation Pvt Ltd - India
- TeaM Sual Corporation - Philippines
- Rashtriya Ispat Nigam Limited - India
- Krishnapatnam Port Company Ltd. - India
- Gujarat Mineral Development Corp Ltd - India
- Metalloyd Limited - United Kingdom
- Singapore Mercantile Exchange
- LBH Netherlands Bv - Netherlands
- Tata Chemicals Ltd - India
- Indian Oil Corporation Limited
- Kideco Jaya Agung - Indonesia
- Toyota Tsusho Corporation, Japan
- Kapuas Tunggal Persada - Indonesia
- The University of Queensland
- Sakthi Sugars Limited - India
- Energy Link Ltd, New Zealand
- Chettinad Cement Corporation Ltd - India
- Mjunction Services Limited - India
- Ambuja Cements Ltd - India
- Dalmia Cement Bharat India
- ICICI Bank Limited - India
- Sojitz Corporation - Japan
- Iligan Light & Power Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- SMC Global Power, Philippines
- Central Java Power - Indonesia
- Madhucon Powers Ltd - India
- Therma Luzon, Inc, Philippines
- Vedanta Resources Plc - India
- Deloitte Consulting - India
- Bulk Trading Sa - Switzerland
- Gujarat Electricity Regulatory Commission - India
- Mintek Dendrill Indonesia
- Binh Thuan Hamico - Vietnam
- Posco Energy - South Korea
- IHS Mccloskey Coal Group - USA
- Xindia Steels Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Oldendorff Carriers - Singapore
- Siam City Cement - Thailand
- Ceylon Electricity Board - Sri Lanka
- Holcim Trading Pte Ltd - Singapore
- SN Aboitiz Power Inc, Philippines
- Wood Mackenzie - Singapore
- ASAPP Information Group - India
- Marubeni Corporation - India
- Petron Corporation, Philippines
- Baramulti Group, Indonesia
- Commonwealth Bank - Australia
- Salva Resources Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Indogreen Group - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Planning Commission, India
- Cement Manufacturers Association - India
- The State Trading Corporation of India Ltd
- South Luzon Thermal Energy Corporation
- Karbindo Abesyapradhi - Indoneisa
- Vijayanagar Sugar Pvt Ltd - India
- Thiess Contractors Indonesia
- Meralco Power Generation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Thai Mozambique Logistica
- Karaikal Port Pvt Ltd - India
- White Energy Company Limited
- Altura Mining Limited, Indonesia
- Leighton Contractors Pty Ltd - Australia
- Price Waterhouse Coopers - Russia
- Savvy Resources Ltd - HongKong
- Maheswari Brothers Coal Limited - India
- Interocean Group of Companies - India
- Sindya Power Generating Company Private Ltd
- CNBM International Corporation - China
- GAC Shipping (India) Pvt Ltd
- Meenaskhi Energy Private Limited - India
- Port Waratah Coal Services - Australia
- Riau Bara Harum - Indonesia
- Borneo Indobara - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Goldman Sachs - Singapore
- GMR Energy Limited - India
- Global Coal Blending Company Limited - Australia
- Kaltim Prima Coal - Indonesia
- Merrill Lynch Commodities Europe
- Uttam Galva Steels Limited - India
- Miang Besar Coal Terminal - Indonesia
- San Jose City I Power Corp, Philippines
- Globalindo Alam Lestari - Indonesia
- Bhushan Steel Limited - India
- Cigading International Bulk Terminal - Indonesia
- Eastern Coal Council - USA
- Lanco Infratech Ltd - India
- Ministry of Mines - Canada
- Global Green Power PLC Corporation, Philippines
- Standard Chartered Bank - UAE
- London Commodity Brokers - England
- Malabar Cements Ltd - India
- Aditya Birla Group - India
- Orica Mining Services - Indonesia
- Eastern Energy - Thailand
- McConnell Dowell - Australia
- Coalindo Energy - Indonesia
- Bukit Makmur.PT - Indonesia
- Antam Resourcindo - Indonesia
- Rio Tinto Coal - Australia
- Latin American Coal - Colombia
- The Treasury - Australian Government
- Samtan Co., Ltd - South Korea
- Asmin Koalindo Tuhup - Indonesia
- Pendopo Energi Batubara - Indonesia
- Kartika Selabumi Mining - Indonesia
- Tamil Nadu electricity Board
- Barasentosa Lestari - Indonesia
- Electricity Authority, New Zealand
- Power Finance Corporation Ltd., India
- AsiaOL BioFuels Corp., Philippines
- Coastal Gujarat Power Limited - India
- Banpu Public Company Limited - Thailand
- PetroVietnam Power Coal Import and Supply Company
- Jorong Barutama Greston.PT - Indonesia
- Simpson Spence & Young - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- PTC India Limited - India
- New Zealand Coal & Carbon
- MS Steel International - UAE
- Energy Development Corp, Philippines
- Orica Australia Pty. Ltd.
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Jaiprakash Power Ventures ltd
- Intertek Mineral Services - Indonesia
- Formosa Plastics Group - Taiwan
- Parry Sugars Refinery, India
- Indika Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Georgia Ports Authority, United States
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Attock Cement Pakistan Limited
- Videocon Industries ltd - India
- Timah Investasi Mineral - Indoneisa
- Indo Tambangraya Megah - Indonesia
- Bukit Baiduri Energy - Indonesia
- Trasteel International SA, Italy
- Central Electricity Authority - India
- Ministry of Finance - Indonesia
- Larsen & Toubro Limited - India
- Mercator Lines Limited - India
- Economic Council, Georgia
- Africa Commodities Group - South Africa
- PowerSource Philippines DevCo
- GN Power Mariveles Coal Plant, Philippines
- Ind-Barath Power Infra Limited - India
- Makarim & Taira - Indonesia
- Sarangani Energy Corporation, Philippines
- Australian Coal Association
- Bukit Asam (Persero) Tbk - Indonesia
- Independent Power Producers Association of India
- VISA Power Limited - India
- GVK Power & Infra Limited - India
- Global Business Power Corporation, Philippines
- Australian Commodity Traders Exchange
- Vizag Seaport Private Limited - India
- Kobexindo Tractors - Indoneisa
- Bahari Cakrawala Sebuku - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Siam City Cement PLC, Thailand
- Sinarmas Energy and Mining - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- SMG Consultants - Indonesia
- Bhatia International Limited - India
- Billiton Holdings Pty Ltd - Australia
- Minerals Council of Australia
- Anglo American - United Kingdom
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Sidhee Cement - India
- Sree Jayajothi Cements Limited - India
- Indian Energy Exchange, India
- Electricity Generating Authority of Thailand
- Renaissance Capital - South Africa
- Kumho Petrochemical, South Korea
- Maharashtra Electricity Regulatory Commission - India
- Medco Energi Mining Internasional
- IEA Clean Coal Centre - UK
- Grasim Industreis Ltd - India
- PNOC Exploration Corporation - Philippines
- Coal and Oil Company - UAE
- CIMB Investment Bank - Malaysia
- International Coal Ventures Pvt Ltd - India
- India Bulls Power Limited - India
- Bangladesh Power Developement Board
- Star Paper Mills Limited - India
- Mercuria Energy - Indonesia
- Parliament of New Zealand
- Romanian Commodities Exchange
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Offshore Bulk Terminal Pte Ltd, Singapore
- Semirara Mining Corp, Philippines
- Manunggal Multi Energi - Indonesia
- Chamber of Mines of South Africa
- Jindal Steel & Power Ltd - India
- Bhoruka Overseas - Indonesia
- European Bulk Services B.V. - Netherlands
- Semirara Mining and Power Corporation, Philippines
- Carbofer General Trading SA - India
- Heidelberg Cement - Germany
- Ministry of Transport, Egypt
- Directorate Of Revenue Intelligence - India
- Kepco SPC Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
|
| |
| |
|
