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

September 01, 2020
Ghee Peh
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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. 

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