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Jakarta Post

Major losses make PLN a risky bet

  • Elrika Hamdi

    -

Jakarta   /   Tue, June 5, 2018   /  01:57 pm
Major losses make PLN a risky bet Employees of state electricity firm PLN's West Nusa Tenggara branch carry equipment to lay down an undersea cable network in Gili Gede, Lombok, in this Feb. 22 file photo. Connectivity and access has long been a challenge in the archipelagic province. (JP/Panca Nugraha)

In early May, one of Japan’s major insurers, the Dai-ichi Life Insurance Company, became the first Japanese financial institution to restrict lending to coal-fired power plants. This 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 since banking giant HSBC ruled out coal power financing. Nowhere will the importance of these announcements resonate more strongly than within the corridors of Indonesia’s state electricity company PLN, which has launched a US$5 billion global medium-term note program to raise money to expand its largely coal-based power business. While European and United States institutions have been clamping down on coal lending for some time, Japanese financiers, both public and private, had seemed steadfastly in the fossil ...

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