Live exports to indonesia dry up
On May 23 this year, in a speech before Singapore’s National Association of Private Enterprise Overseas Limited (NAPO) at the annual Asia Pacific Economic Cooperation (Apec) conference, Prime Minister Lee Hsien Loong said Indonesia is now unable to cope with rising oil prices in the region due to the low return on investments in its mining sector, which is in decline.
“We now need to invest more in Indonesia’s coal and iron-ore industry,” Lee said. “As Indonesia’s total coal production declines, its total iron ore production will decline as well.”
When oil prices plunged in 2013 and oil imports have dropped since, Lee said in September 2015, Indonesia is “facing a serious short-term problem of the economy, as it is facing a negative balance sheet.”
In fact, Lee’s remarks appeared to have an effect, as both Indonesia and the Indonesia Energy Development Corporation (IOEC) now import half of their coal from India and Indonesia’s share in iron ore imports from India has plunged to 20 percent.
Since then Ind바카라onesia’s own iron ore production has not been able to keep up with falling dem우리카지노and due to an inability by the mining sector to attract new investors, according to the Jakarta Post.
With the share of global oil consumption falling in line with China, increasing production by India was seen as a significant factor. And so, Indonesian’s share in global gas consumption rose to 23 percent in December 2015, from 13 percent in April of 2016, the latest available statistics.
The result of falling Indonesia’s capacity to raise the price of imported coal from $2.10 per million British thermal units (BMTU) to $4 per million BTMU has led to growing concerns that prices for Indonesian coal will also drop.
The International Monetary Fund (IMF) has also warned that Indonesia, which had once a $15 per MMBtu export quota, may have to import as much as 4 times its current export quota of roughly 2 billion BMTU. Indonesia is also facing pressure from China, which has been increasing its coal imports for its domestic power generation to cope with rising costs.
The Indonesian government must act fast to address this. The World Bank has told the government that it needs to set up a coal and iron market to offset rising Indo더킹카지노nesian coal and iron ore imports, and to provide assistance in a gradual manner.
According to Indonesian energy industry ministry official Datuk Seri Dr Mahdudin Nusak Besa