IPP
, Indonesia
102 views

Coal companies' cash balance could fund Indonesia’s green transition

The combined cash balance amounted to $6.8b in the first quarter. 

The combined cash balance of eight coal companies in Indonesia, amounting $6.8b, could accelerate its clean energy transition, a report found. 

According to the Institute of Energy Economics and Analysis (IEEFA), the cash balance of the companies could also help repay financial debt. 

The report analysed the financial performance of ABM Investama, Adaro Energy, Bayan Resources, Geo Energy Resources, Harum Energy, Indika Energy, ITMG, and PTBA. 

"In the event that there is conflict resolution, coupled with the EU’s commitment to decarbonize, coal prices are likely to normalize from current levels longer term,” Ghee Peh, energy finance analyst, IEEFA, said. 

“Coal companies should not miss the opportunity now to diversify away from coal before the cost to transition gets higher.”

Read more: India RE open access capacity climbs by 1.9GW in 2022: report

According to Peh, coal companies in the country benefitted from the surge in coal prices, which grew to $92 per tonne in the first quarter. This reflected a 29% growth compared to the average price seen in 2021. 

Indonesia will continue to benefit from high coal prices as countries import from the country with markets, such as Japan, Korea, and Taiwan, looking to phase out Russian coal imports in the second half of the year. 

“Shipping routes to North Asia will become longer from Australia and Indonesia, compared to Russia,” Peh also said. 

“Also, India buying more coal from Russia will result in delays to shipping routes as Indonesia is closer.” 

 

Follow the link for more news on

Join Asian Power community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Could coal-based power still get funding
Asian markets have increased coal output to meet energy demand.
Indonesia’s new regulation speeds up energy transitions
The government has issued Presidential Regulation No. 112 of 2022 to limit the coal-fired power plants and gradually reduce coal consumption.