Skip to main content

No bailout - only one listed coal company is profitable, the rest are in the red

September 01, 2020
Ghee Peh
Download as PDF

Key Findings

With only one leading coal company currently making a profit, the Indonesian government must let the market decide the future for financially broken coal companies wishing to avoid payments of much-needed royalties and loans.

Exacerbated by COVID-19, coal prices have dropped some 52% in 5 months and Indonesia's coal export markets, including China and India, are slashing imports and increasingly turning to domestic sources to bolster energy security.

THE INDONESIAN COAL INDUSTRY IS FACING A RANGE OF STRUCTURAL RISKS THAT GO BEYOND THE CURRENT WEAK PRICING.

50% fall in coal prices since January hammers a structurally broken industry

Ghee Peh

Ghee Peh is an energy finance analyst with a focus on the Asian coal industry and South East Asia. Ghee has worked on major mining IPOs in Hong Kong and Indonesia including coal, copper and gold companies and has a deep interest in commodity markets. 

Go to Profile

Join our newsletter

Keep up to date with all the latest from IEEFA