Logo

EN | ID

PRIVATE GAIN, PUBLIC RISK: Guarantees And Credit Enhancement For Coal-fi red Power Plants In Indonesia (2017)


AURIGA -  Recently, the Government of Indonesia has made several moves to provide guarantees and similar policies that transfer risk from developers of coal-fired power plants to the government. These transfers of risk could result in very large subsidies to these projects, putting Indonesian taxpayers and ratepayers on the hook for substantial costs if economic or policy conditions change. These subsidies could add up to billions of dollars per year if applied across the government’s full 35 GW electricity generation expansion plan. This is significant considering Indonesia’s tax revenues are roughly $25 billion a year.