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Jakarta Post

Coal miners look to S. Korea, China amid low investment

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Sat, May 18 2019   /  01:59 am

Indonesia’s second-largest coal producer, PT Adaro Energy, has started looking to China and South Korea for potential funding sources as countries in Europe shift away from investing in coal-related businesses such as power plants and mining due to climate concerns.

A report released in February by global energy think tank Institute for Energy Economics and Financial Analysis (IEEFA) shows that over 100 global financial institutions have shifted away from thermal coal, including 40 percent of the top 40 banks and 20 insurers.

Dharma Djojonegoro, the vice president of Adaro Energy’s power subsidiary PT Adaro Power, told the press on Wednesday that finding new financing for a coal-fired power plant (PLTU) project has become difficult.

However, he remains upbeat about financing options from China and South Korea.

“It’s hard for us to find financing for ou...