Indonesia

IEEFA Research

IEEFA Indonesia: Coal-Centric State Utility Will Likely Raise Rates by 2020

IEEFA Indonesia: Coal-Centric State Utility Will Likely Raise Rates by 2020

‘New Level of Risk’ Seen in Investing in Outdated Power Generation

May 14, 2018 (IEEFA) — Indonesia’s state-owned utility may raise electricity tariffs to offset its growing costs, concludes an investment-research memo published today by the Institute for Energy Economics and Financial Analysis. The memo—“PLN’s Coal IPP Funding Gap Suggests Tariffs Must Rise in 2020”—comes as the utility plans to bring a more than $1 billion debt […]

IEEFA Report: Indonesia’s State Power Company Continues to Lag Global Shift in Electricity Generation

IEEFA Report: Indonesia’s State Power Company Continues to Lag Global Shift in Electricity Generation

‘Sinking Under the Weight of a Flawed Planning Process That Lacks Crucial Insight Into Clean Energy Trends’

IEEFA — Indonesia’s national power company is perilously out of step with global trends in electricity generation even as it seeks a more than $1 billion infusion from international bond markets, concludes a report published today by the Institute for Energy Economics and Financial Analysis (IEEFA). The report — “Perusahaan Listrik Negara (PLN): A Power Company […]

April 19, 2018 Read More →
IEEFA Indonesia: A Potential Overcommitment to Coal-Fired Electricity Puts a Nation at Risk

IEEFA Indonesia: A Potential Overcommitment to Coal-Fired Electricity Puts a Nation at Risk

Out of Step With a Global Shift in the Energy Economy

We’ve just published a report that calls into serious question Indonesia’s plans to expand its commitment to coal-fired electricity generation. The report—“Overpaid and Underutilized: How Capacity Payments Could Lock Indonesia Into a High-Cost Electricity Future”—analyzes Indonesia’s 2017-26 national energy blueprint and shows how long-term coal power contracts that the country is contemplating will not just […]

August 10, 2017 Read More →
IEEFA Report: Electricity-Sector Opportunity in the Philippines

IEEFA Report: Electricity-Sector Opportunity in the Philippines

The Case for Wind-and Solar-Powered Small Island Grids

May 8, 2017, MANILA (IEEFA.org) — The Institute for Energy Economics and Financial Analysis today published a report outlining how small islands in the Philippines can effectively replace outdated, diesel-fuel electricity-generation systems with solar- and wind-powered grids. The report—“Electricity-Sector Opportunity in the Philippines – The Case for Wind- and Solar-Powered Small Island Grids”—notes that many […]

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IEEFA update: Indonesia hits the reset button on PLN’s expansion plans

IEEFA update: Indonesia hits the reset button on PLN’s expansion plans

Putting the brakes on a runaway state-owned utility

Currency crises can bring hard truths into focus. That’s the lesson that the many parties who have been feeding off of Indonesia’s power sector expansion must be considering after the announcement earlier this month that 13,374[1] megawatts (MW) of planned new power capacity would be delayed. This cannot have come as a surprise. The warning […]

September 18, 2018 Read More →

IEEFA Indonesia: The case for modernizing national energy policy

Research brief: The current state of electricity generation affairs is designed mainly to benefit the coal industry

In April 2018, President Joko Widodo unveiled a roadmap to drive Indonesia into the world’s top 10 largest economies by 2030. Making Indonesia 4.0 is a reference to the fourth industrial revolution sweeping the world via innovations in digital technology, artificial intelligence and 3-D printing, among other areas. Making Indonesia 4.0 aims to spur growth […]

September 7, 2018 Read More →

Indonesia puts hold on new power plant investment

Bloomberg: Indonesia plans to delay $25 billion worth of power projects as it seeks to rein in a widening current-account deficit and a selloff in the nation’s currency. The government will delay almost half of the planned 35 gigawatts of electricity projects as it wants to ease pressure on imports, Energy and Mineral Resources Minister […]

September 6, 2018 Read More →

Corruption scandal roils Indonesian coal plant expansion plans

Mongabay: A far-reaching corruption scandal centered on a proposed power plant in Indonesia has cast a shadow over the country’s risky reliance on coal as a supposedly cheap source of energy. Antigraft investigators arrested nine people in July, including a member of the national parliament, over allegations of bribery in connection with the awarding of […]

August 29, 2018 Read More →

IEEFA update: Southeast Asian fossil fuel risk is underpriced

Hazards from corruption, policy change, stranded assets, and ill-informed advisors

HONG KONG — We’ve just published a memo describing how July was an exceptionally telling month for Southeast Asia power-generation markets. Our memo argues that fossil fuel risk is underpriced in the region, and it makes four specific points along these lines. First, that there is too little transparency around certain deals in Indonesia. News in […]

August 8, 2018 Read More →

IEEFA update: Indonesia’s high-risk flirtation with resource nationalism

A dangerous overreliance on the coal industry and state-owned enterprises

JAKARTA — Next spring’s presidential and parliamentary elections are fast approaching, and a classic Indonesian pre-election syndrome that combines nationalism and populism has become widely apparent. As with many countries, Indonesia is dangerously susceptible to such fervor, which can make for questionable policy choices on strategic domestic issues such as infrastructure development and energy affordability. […]

June 29, 2018 Read More →

IEEFA op-ed: Losses make Indonesian electric company a high-risk bet

Global trends make coal-fired expansion a hard case to sell

In early May, one of Japan’s major insurers, Dai-ichi Life, became the first Japanese financial institution to restrict lending to coal-fired power plants. This news came only days after Allianz, Europe’s largest insurer, announced it would immediately pull its coverage from coal-fired power plants and coal mines, and barely a fortnight after banking giant HSBC […]

IEEFA Update: Indonesia’s Electric Company Gets Its Bond Deal Done, But Investor Risk Remains

How Much Will the Government Be Willing to Subsidize PLN?

Last week was good to PLN, Indonesia’s state owner power company. Despite chaotic emerging bond markets, which had punished the rupiah and pushed yields on Indonesian bonds higher, PLN was able to paddle safely to shore with a successful US$2 billion bond issue. Flexibility was the key to getting the financing done. With guidance from […]

Government Policy Thwarts Uptake of Renewables in Indonesia

Mongobay: Demand for energy in China and Indonesia continues to drive the resurgence of the latter’s coal industry, setting back efforts in both countries to shift to a greater share of renewable energy. Mining, freight and trade executives were largely upbeat at what was billed as the coal industry’s biggest event of the year, the […]

May 31, 2018 Read More →
IEEFA Indonesia: Coal-Centric State Utility Will Likely Raise Rates by 2020

IEEFA Indonesia: Coal-Centric State Utility Will Likely Raise Rates by 2020

‘New Level of Risk’ Seen in Investing in Outdated Power Generation

May 14, 2018 (IEEFA) — Indonesia’s state-owned utility may raise electricity tariffs to offset its growing costs, concludes an investment-research memo published today by the Institute for Energy Economics and Financial Analysis. The memo—“PLN’s Coal IPP Funding Gap Suggests Tariffs Must Rise in 2020”—comes as the utility plans to bring a more than $1 billion debt […]