Mikhail Gorbachev, the former Soviet leader whoÂ died last month at 91, was famous in the West for perestroika and glasnost. But three other Russian words also familiar in English were even more consequential for his reign and the resulting Soviet downfall: gaz, neft (oil), and atom. Gorbachev’s approach to these pillars of the Soviet economy continue to shape Russia’s relations with the world.
The most dramatic event of Gorbachev’s tenure, before the failed coup d’Ã©tat that proved the coup de grÃ¢ce for the Soviet Union, was the 1986 nuclear accident at Chernobyl. The cost of the cleanup was colossal, estimated at $68 billion in today’s money and involving some 500,000 people.Â
After the accident, plans to switch from oil and gas power to nuclear power were abandoned. Even more damaging, the Soviet system’s technical incompetence, dishonesty, and callousness were revealed to the world by theÂ
undeniable accusations of Geiger counters.
The rapid exploitation of the giant West Siberian oil fields kept the Soviet Union’s economy alive through the oil price boom of the 1970s but became its albatross during the late-1980s. Wasteful operational practices and a lack of modern technology led to over-hasty depletion, driving up production costs. Oil exports had risen solidly up to 1983 but then flattened out.
Petroleum was essential to feed energy-inefficient Soviet industries, subsidize its client states in Eastern Europe, and to earn foreign currency to buy technical goods and even wheat. Tensions grew between the Soviet Union and the other members of its economic sphere: they wanted cheap oil while Moscow preferred to sell to the West for dollars and Deutschmarks. Winters in Poland and Romania became cold and hungry.
American President Ronald Reagan has been credited in some quarters with driving down oil prices to undermine the Soviet economy. But while prices did crash in 1986, plummeting from $30 a barrel to $10, this alleged masterstroke was hatched in Riyadh, not Washington. Saudi Arabia had belatedly realized that its policy of cutting back production to defend prices was unsustainable in the face of “cheating” â€“ overproduction by its OPEC colleagues â€“Â and rising non-OPEC output.
As Saudi Arabia flooded the market to drive out its competitors, American Vice President George H.W. Bush, a Texas oilman himself, traveled to Saudi Arabia to request restraint on production. He wanted higher prices to protect domestic drillers in the United States.
Bush’s efforts failed but the drop in oil revenues did fatally undermine the Soviet economy. As former Russian Prime Minister Yegor Gaidar explained, the Soviets couldn’t pay their bills or import food without Western credits, and those credits would be cut off if Gorbachev repressed the pro-democracy movements in Eastern Europe, as his predecessorsÂ NikitaÂ Khrushchev and Leonid Brezhnev had done. This led speedily to the fall of the Berlin Wall, then to the disintegration of the Soviet Union itself.
But this is where gaz comes to the fore.
The USSR had first agreedÂ to sell gas beyond the Iron CurtainÂ in 1968, to Austria. The US repeatedly expressed worries about Europe’s growing reliance on Soviet gas, minor though its share was at first. Under Reagan in particular, as detente was replaced by confrontation, Washington applied sanctions and diplomatic and trade pressure to try to stop new Russian pipelines.
Under Gorbachev, who assumed power in 1985, gas exports to Western Europe grew dramatically â€“ from 29 billion cubic meters in 1983 to 63 billion cubic meters in 1990 â€“ even as the Soviet imperium crumbled. But this gas trade was not as one-sided as it would become during Russian President Vladimir Putin’s reign.
After 1991, Russia remained tied to Western Europe by pipelines. These crisscrossed newly independent states, notably Ukraine and Belarus, and were one of the few tools the weak Russia of the 1990s had to coerce former Soviet republics. A very different character from Gorbachev or his Kremlin inheritor Boris Yeltsin, Putin turned that tool into a weapon and extended it to Germany and other states beyond the former Iron Curtain.
Gazprom, successor of the Soviet Ministry of Gas, was rebuilt as the state champion. The Russian share of European gas consumption tripled, reaching 184 billion cubic meters in 2021. A chink in the armor became an Achilles’ heel.
Similarly, the pipeline monopoly, Transneft, and Rosneft, the vehicle of Putin ally Igor Sechin, made the petroleum oligarchs of the 1990s into exiles or tame servants of the Kremlin. Russia, rival and sometimes victim of OPEC throughout the 1980s and 1990s, became a partner with the launch of the OPEC+ alliance in 2016. Higher oil prices helped Russia build a war chest, which prevented the West from wielding loans against it.
Russia’s energy reach extends even further afield through Rosatom, the state’s nuclear energy corporation. Today it offers technically-superior solutions to theÂ RMBK reactor that exploded at Chernobyl. In fact, Rosatom has been one of a small group of leading exporters of civil nuclear power, building plants at Bushehr in Iran, Akkuyu in Turkey, and El Dabaa in Egypt, to name a few. Russia is also an important exporter of nuclear fuel.
Rosatom has so far escaped sanctions levied by the West because of the war in Ukraine, but may face financing challenges as customers become wary of deepening their energy dependence on Russia. The Russian shelling around the Zaporizhzhia nuclear plant in Ukraine, and itsÂ disconnection from the grid, also carry the threat of another radioactive cloud drifting over Europe.
Gorbachev had only five years to solve intractable energy and economic problems, and he broke the state trying. If he had enjoyed Putin’s luck with rising oil prices, history might have been different. Instead, the Kremlin’s current occupant wields a brittle energy dominance that is based largely on a blueprint Gorbachev helped to write.
Syndication Bureau ________________
Robin M. Mills is CEO of Qamar Energy, and author of “The Myth of the Oil Crisis.”
Anticipating Election Challenges, JCI in February 2024: Most Promising Stocks and Investment Strategy
Telegraf – The CSA Index for February 2024 was 59.7, indicating a decline in the level of optimism compared to January, which reached 83.7. This decline
suggests that market participants are less enthusiastic about trading in February.
The reasons cited by many market participants for this decline are the elections held this month and the weakening of the Rupiah exchange rate. Despite the decrease, a number above 50 indicates that more market participants are predicting IDX Composite to be bullish in February.
The consensus for IDX Compositeâ€™s February 2024 closing is 7,258, indicating a slight increase from the January 2024 closing at 7,207.
Based on the results of in-depth interviews, it is evident that market participants perceive the uncertainty due to the election as quite high.
If the election concludes in one round, it will be a positive development, allowing market participants to promptly allocate their assets to adjust to the election results.
However, if there are two rounds, uncertainty will persist until the second round of elections is held.
Additionally, the weakening Rupiah and the potential increase in geopolitical tensions are believed to make it harder for IDX Composite to advance.
The heightened geopolitical tension is thought to have a significant impact on global supply chains, while expectations of an interest rate cut by the Fed in March are diminishing. 93.4% of market participants remain optimistic that the IDX Composite will experience a bullish trend over the next twelve months.
This figure is higher than the 93.0% optimism recorded for the annual IDX Composite movement in January.
The most influential positive sentiment is that market participants believe economic growth will still be good in 2024, and there is hope that the Fed will continue to cut interest rates this year.
The expectation of improved performance by issuers after the election is also a reason why investors believe the IDX Composite will continue to grow in 2024.
Market participants are targeting the IDX Composite to strengthen to the level of 7,697 in the next twelve months.
This indicates that the IDX Composite is expected to strengthen by 489 points or 6.78% from its closing position at the end of January 2024.
This target is based on the recognition of several negative sentiments with longterm effects, such as increased geopolitical risks and a slowdown in the world economy.
Despite volatility in commodity prices and exchange rates in the next 12 months, Indonesia’s economy is still expected to grow.
Market participants are eagerly anticipating the policy direction of the government to be elected in the next election, which is expected to further support IDX Composite growth.
Dr. David Sutyanto, CSA, General Chair of AAEI responded to the results of the CSA Index Feb 24 “CSA Index Feb 24 shows that market players’ optimism is decreasing in facing trading in February 2024.
This is due to the election event and the decreasing possibility of the Fed reducing interest rates in the near future.
However, the JCI is projected to still strengthen even though it is limited.
The election is the main factor that creates uncertainty, with the market tending to “wait and see” until a new president is elected.
The CSA Index also examines the sectors that will be the main drivers for the IDX Composite in February.
The financial sector is the top choice for the majority of market participants as a sector that can spur the IDX Composite.
The release of banking financial reports with results above expectations and low valuations makes this sector favoured.
Apart from the financial sector, the non-primary consumer goods sector is also the second most preferred.
This indicates that the level of domestic consumption is still maintained, reflecting optimism about domestic economic conditions.
In the view of NS. Aji Martono, the Chairman of PROPAMI, the market is likely to adopt a “wait and see” approach, evaluating the future vision for Indonesia, particularly in economic sectors and policies impacting the capital market.
While acknowledging the historical technical and fundamental significance of the CSA Index, Aji emphasizes the importance of caution, even during election-related market upswings, by considering both technical and fundamental analyses.
Foreign investors in early February bought up shares with a net buy of IDR 886.17 billion.
Throughout 2024, foreign investors’ net buy will reach IDR 9.21 trillion.
5 Top Gainers
- Shares RSCH (34.69%)
- SOTS (34.36%)
- PTMP (16.98%)
- INPS (15.13%)
- CBUT (12.00%)
5 Top Losers Shares
- MPXL (-19.44% )
- MLPT (-10.56%)
- SMGA (-10.08%)
- SMMA (-9.13%)
- TRUS (-9.09%)
5 Shares Net Buy Foreign Investors
- BBCA IDR 543.6 billion
- TLKM IDR 198.8 billion
- BBRI Rp. 131.0 billion
- BBNI Rp. 103.5 billion
- ADRO Rp. 35.3 billion
5 Shares Net Sell Foreign Investors
- KLBF (Rp. 31.6 billion)
- FILM (Rp. 28.5 billion)
- MEDC (Rp. 21.5 billion)
- BRPT (Rp. 15.2 billion)
- INKP ( IDR 15.2 billion)
Breaking the Shackles of Coal Power
In the classic movie “The Shawshank Redemption,” there’s a moment where Andy Dufresne dreams of a life beyond the prison’s walls, symbolizing the power of hope and ambition against all odds. This beautifully mirrors the scenario faced at COP28. Just as Dufresne faced the formidable walls of Shawshank, world leaders at COP28 set ambitious targets to escape from fossil fuels in a “just, orderly, and equitable manner.”
TheÂ Dubai ConsensusÂ marks a pivotal moment in the history of climate agreements. For the first time since the inaugural COP in Berlin in 1995, there’s an explicit reference to fossil fuels and the need to transition away from them to halt global warming. Previous agreements have broadly referred to just reducing greenhouse gas emissions.Â This general approach persisted until the 26thÂ COP in Glasgow in 2021 when a more specific commitment was made to address theÂ most polluting of fossil fuels, coal. There, nations consented to a gradual reduction in its usage. The Dubai Consensus, however, has also recognized the need to triple renewable energy capacity globally by 2030 and accelerate efforts toward the “phase down of unabated coal power.”
Achieving these ambitious goals is undoubtedly a daunting challenge. The deep-rooted dependence on fossil fuels, the disparate economic strengths of nations, particularly those in the developing world, and the hurdles presented by existing technology create formidable barriers. Like the imposing walls ofÂ Â Shawshank, they are seemingly insurmountable yet not entirely impervious. The path forward is difficult but not unattainable, demanding perseverance and concerted global effort.
The journey toward phasing out coal presents three significant challenges, particularly for developing countries.Â
The first concern is energy security. Phasing out coal is a complex task; it currently accounts for approximatelyÂ 26 percent of the world’s energy consumption. Notably, 81 percent of coal used in energy production is in countries outside of the Organization for Economic Cooperation and Development, indicating that it’s predominantly developing nations relying on coal to meet their energy needs.Â
Consequently, eliminating coal usage substantially threatens their energy security, placing the onus of the transition away from fossil fuels on these countries. However, the lack of affordable and clean alternative energy sources and difficulties in technology transfer make this transition particularly challenging.
Second, a rapid transition away from coal could exacerbate poverty, particularly in regions within developing countries where coal is a critical economic pillar. Many developing countries have states or provinces that dependÂ heavily on coal for revenue and employment. A swift phase-out could disrupt these economies, leading to increased poverty and socio-economic instability.
Further, the costs of energy transition in developing countries often directly impact household budgets. These measures can lead to higher costs for electricity, water, and transportation. The increased expense can be particularly burdensome in countries where a significant portion of the population already struggles with economic instability. While these policies are crucial for long-term environmental sustainability, their immediate financial impact on households in developing nations poses a significant challenge. Therefore, the transition needs to balance environmental goals with economic feasibility and the socio-economic well-being of the populations most reliant on coal.
Â Developing countries often argue that global discussions on reducing fossil fuel usage disproportionately focus on coal instead of equally addressing oil and natural gas. These nations, with significant coal reserves and a heavy reliance on coal for their energy, see the rapid phasing out of coal as a risk to their economic stability.Â
Moreover, there’s a sense of inequity in how developed countries, traditionally large coal, oil and gas consumers, advocate for diminishing coal usage â€“ a vital energy source for many emerging economies. While the coal usage of OECD countries has declined, according to theÂ Statistical Review of the World Energy 2023, oil consumption by OECD countries increased by 1.4 million barrels per day in 2022. This viewpoint suggests a bias in international climate negotiations, advocating for a more balanced approach that equally considers the reduction of all types of fossil fuels.
Â A third challenge for developing nations in transitioning to clean energy isÂ access to capital and financing. TheÂ UN Environment Program’s Adaptation Gap ReportÂ estimates these countries need $215â€“387 billion yearly until 2030. The Independent High-Level Expert Group on Climate Finance’sÂ second reportÂ reveals a stark reality: only 7 percent of 2022’s clean energy investments were in low and lower-middle-income nations (except China). These countries face daunting barriers like high-interest rates, vague policies and expensive capital.Â
To achieve the Paris Agreement, a substantial boost in renewable energy is crucial for emerging markets and developing countries. The key lies in a fivefold increase in concessional finance by 2030, as this is the most crucial yet scarce funding source for pressing needs. Developed nations must triple their bilateral concessional contributions by 2030. However, the scale of need surpasses whatÂ Â official development assistance can provide.
Similar to Shawshank’s formidable barriers, these obstacles make the path forward extremely challenging but not impossible. Addressing these hurdles is crucial, for without overcoming them, the transition will remain as elusive as Andy Dufresne’s dream of freedom within the confines of Shawshank.
Aditya Sinha is an Officer on Special Duty, Research, at the Economic Advisory Council to the Prime Minister of India. X: @adityasinha004
Red Sea Shipping Attacks Threaten Global Economy
To understand the implications for international shipping of the Yemen-based Houthi militant attacks in the Red Sea, it may be useful to start thousands of kilometers away, in the Port of Singapore. One of the busiest container shipping ports in the world, Singapore is a regular stop for all of the world‘s leading shipping companies, and a key hub for Asia-Europe trade.
Â Now, let‘s imagine a major container ship sailing the 17,000 kilometers from Singapore to Rotterdam. After exiting the port, it heads for its first major choke point, the Malacca Strait. Once through that vital waterway, it finds open seas, traversing the Indian Ocean and the Arabian Sea. As it approaches the coast of Yemen, it faces the Bab Al Mandeb Strait, another key chokepoint, before it enters the Red Sea onward to the Suez Canal.
Â If everything goes according to plan â€“ and it usually does â€“ the container ship passes through the Suez and will find itself sailing the Mediterranean headed for the Gibraltar Strait, another key choke point, between Morocco and Spain. Then, it will be on an Atlantic Ocean run north to the key Dutch port that is a major hub of northern Europe.
Â Everything is timed, synchronized, planned, and mapped for smooth sailings. After all, the global economy â€“ and the bottom line of the shipping company â€“ depends on it. Roughly 80-90 percent of world trade by volume is shipped by sea, according to the UN.Â
Â So, when something goes wrong in any part of that journey, it‘s not just individual ships or shipping companies that feel the pain. We all do.
Â The recent attacks by the Houthi militants on international shipping in the Red Sea has scrambled supply chains, pushed up oil and natural gas prices, and raised geopolitical tensions far beyond the states surrounding the Red Sea. Some of the world‘s largest shipping companies â€“ MSC, Maersk, CMA CGM Group, and Hapag-Lloyd â€“ have suspended their sailings in the Red Sea. Energy giant BP has also declared it will avoid the Red Sea until further notice.
The implications for world trade are serious. Roughly 15 percent of global trade and 30 percent of container traffic passes through the Suez Canal. The Red Sea and the Suez Canal are vital links in the global economy, playing a pivotal role in the global supply chain of oil, natural gas, food, manufactured products and more. Some 40 percent of Asia-Europe trade passes through the Suez Canal, including vital liquid natural gas supplies.Â In 2021, when a ship became lodged across the canal, blocking it completely, economists estimated that some $10 billion of trade was affected for each day the waterway was blocked.
Â The US military has announced an international coalition to protect Red Sea shipping lanes and provide security for the some 400 ships that are traversing the Red Sea at any given time. The US plan has not entirely soothed insurers, who have raised prices on Red Sea passages and expanded the areas considered high-risk. Prospects of US strikes against the Houthi militants, which are backed by Iran, have been raised. Oil prices are inching upward after several weeks of decline.
Â The Houthis, which control parts of north and west Yemen, have declared their attacks are in response to Israel‘s war in Gaza and that they are targeting ships linked to Israel or using Israeli ports. Most of America‘s regional allies have been cautious about joining the coalition. Across the Arab world, even in capitals where the Houthis are seen as a serious threat to regional stability, aligning with the US at a time of rising public anger over the Israel-Gaza war has made several countries uncomfortable. As a result, the US may be required to lead this operation without a large Middle East contingent to its coalition.
Â Meanwhile, the role of China will also be closely watched. Chinese shippers regularly traverse the Red Sea. China is also the only major purchaser of Iranian crude oil, giving it a degree of leverage over Tehran. Iran‘s links with Houthi militants are clear, but it remains to be seen if Beijing will seek to exert pressure on Tehran to rein in the Houthi attacks â€“ or, at least, to keep them targeted at non-Chinese vessels.
Â Egypt, too, should be watched. The country faces an economic quandary. The Suez Canal Authority reported a record $9.4 billion generated in the 2022-2023 financial year. A serious dent in those revenues would further squeeze an Egyptian economy that is already reeling from a foreign exchange crunch and soaring inflation. Concerns mount that Egypt could default on its roughly $165 billion of foreign debt, one of the highest levels in emerging markets.Â
Â Meanwhile, some 100 container ships are actively avoiding the Red Sea route, according to logistics giant Kuehne+Nagel, and many more are likely to follow. The Singapore-Rotterdam route will now sail all the way around the coast of southern Africa and back up toward the Atlantic Ocean and Europe, adding weeks and rising costs to the journey.
Â At a time of precarious recovery in the global economy and razor sharp geopolitical tensions, the Red Sea attacks are a reminder of how connected we are â€“ and how dangerous it can be when those vital connections are severed.
AfshinÂ MolaviÂ is a senior fellow at the Foreign Policy Institute of the Johns Hopkins School of Advanced International Studies and editor and founder of theÂ Emerging WorldÂ newsletter. Twitter:Â @AfshinMolavi
Bank of England under pressure to cut interest rates after surprise inflation fall
The Bank of England is under mounting pressure to cut interest rates to help homeowners after a surprise fall in inflation gave consumers â€œan early Christmas presentâ€.
Falling petrol prices helped curb inflation to 3.9 per cent, the lowest rate in two years and well below Rishi Sunakâ€™s target of 5 per cent by the end of the year.
But leading economists told The Independent that although â€œthe bulge has made its way through the snakeâ€, much of the â€œlow hanging fruitâ€ has been picked â€“ and the central bank will struggle to reach its longstanding target of 2 per cent.
They also warned that many homeowners coming off fixed rates now face â€œa very different worldâ€, while Britainâ€™s slowing economy and higher mortgage costs mean living standards will â€œremain pretty desperateâ€.
Signalling a change in the political tide, work and pensions secretary Mel Stride said the inflation fall could allow the Bank to ease interest rates and aid those struggling with mortgage costs. Most economists had been expecting a dip to 4.3 per cent last month.
While he emphasised its independence, the cabinet minister said that the faster-than-expected fall in inflation â€œdoes take some pressure off [the Bank] in terms of keeping interest rates higher, which of course in time and in turn feeds into mortgage ratesâ€.
Falling prices at the pumps helped push inflation to a surprise low, which the prime minister hailed as â€œgood news for everyone in this countryâ€.
Inflation also slowed on things like food, air travel and the cost of a second-hand car.
With just days to go before Christmas, Simon Pittaway, senior economist at the Resolution Foundation, said that â€œpoliticians and the public can all cheer this festive surpriseâ€.
But the rampant inflation of recent years means prices are around 20 per cent higher than they were in 2020, and economist Laith Khalaf of AJ Bell warned that food price inflation remains at a â€œpretty concerningâ€ 9 per cent.
Despite the latest figures, Mr Khalaf warned that UK consumers are still â€œheavily under the pumpâ€ â€“ with mortgage holders set to come off fixed deals next year â€œfacing a different worldâ€.
â€œItâ€™s almost like another leg of the cost of living crisis,â€ he told The Independent. â€œIt started off with fuel and heating, it then moved onto food. Thereâ€™s rising interest rates, and donâ€™t forget taxation as well, where over the next five years the tax burden is expected to rise to highest since the Second World War.â€
Suren Thiru, economics director at the Institute of Chartered Accountants, said that the â€œdramaticâ€ fall in inflation showed there was light at the end of the tunnel. But they added that â€œliving standards will remain pretty desperate as this boost is largely offset by a squeeze on incomes from higher mortgage costs and a slowing economy.â€
Labour warned that more than a million people face higher mortgage payments â€œafter the Conservatives crashed the economyâ€.
Following last weekâ€™s decision by the Bank of England to hold its base rate for a third time at 5.25 per cent, economists suggest the markets are pricing in interest rate cuts by May â€“ and perhaps as early as March â€“ as pressure intensifies on the central bank.
â€œThe first 25 basis point cut is now fully priced in for the Bankâ€™s May meeting, with a decent chance of a start to cuts in March,â€ said Matthew Ryan, from financial services firm Ebury, while James Smith of ING bank said: â€œMarkets are right to be pricing a number of rate cuts for 2024 â€¦ starting in May.â€
Yael Selfin, chief economist at KPMG, told The Independent that, while the new inflation figures were good news â€œthe Bank of England is likely to be quite cautious in cutting ratesâ€.
Echoing these concerns, Rob Morgan, chief analyst at Charles Stanley pointed to the soaring prices of recent years as he said: â€œWeâ€™re sort of coming down the other side of [high inflation], so the bulge has made its way through the snake.
â€œOur worry is youâ€™ve had the easy wins because youâ€™ve had the energy bills coming down, fuel prices coming down quite a lot lower. Itâ€™s difficult to replicate that kind of disinflation going forward,â€ he added.
Citing looming increases in the national living wage and state pension, with borrowing costs and mortgage rates also starting to fall, Mr Morgan said: â€œIt makes it difficult to get that last little bit of inflation out of the system. The low-hanging fruit for the Bank of England has been picked.â€
Responding to the inflation figures, the chancellor Jeremy Hunt said the economy was back on the path to â€œhealthy, sustainable growthâ€. But he acknowledged that â€œmany families are still struggling with high prices so we will continue to prioritise measures that help with cost of living pressuresâ€.
Shadow chancellor Rachel Reeves said the fall in inflation would come as a â€œreliefâ€ to families. â€œHowever, after 13 years of economic failure under the Conservatives, working people are still worse off,â€ she added.
â€œPrices are still going up in the shops, household bills are rising, and more than a million people face higher mortgage payments next year after the Conservatives crashed the economy.â€
Kishida says Japan is ready to lead Asia in achieving decarbonization and energy security
Japanâ€™s Prime Minister Fumio Kishida pledged to lead efforts to simultaneously achieve decarbonization, economic growth and energy security in Asia, an ambitious goal he set Monday at a regional climate summit attended by Southeast Asian leaders.
Kishida told the summit of the Asia Zero Emission Community, or AZEC, that the initiative will create â€œa new, huge decarbonization market in Asia that will attract global capital.”
Decarbonization in Asia will require 4,000 trillion yen ($28 trillion), Kishida said, and promised to establish a new organization to support AZEC countries in their effort to implement policies needed to achieve carbon neutrality.
Leaders of nine member countries of the Association of Southeast Asian Nations except Myanmar, in addition to Australia, expressed commitment to cooperate toward achieving carbon neutrality. The summit was held one day after Japan hosted a special summit Sunday commemorating 50 years of ties with ASEAN.
As part of the AZEC initiative, Japan is offering to help other members with technologies to cut emissions, including co-firing technology using ammonia or hydrogen, as well as bendable and more mobile solar panels.
Kishida said Japan will cooperate with AZEC members in setting a decarbonization roadmap and other measures, while also offering support in funding, technology and human resources by establishing the Asia Zero Emission Center in Indonesia.
Japan has achieved 20% emissions reduction and is on course to meet the targeted 46% by 2030, saying it will achieve its net-zero goal by boosting renewables as the main source of power, utilizing nuclear power and taking other measures.
Japan has faced criticism from environmental groups for not setting a timeline to stop using fossil fuel. Kishida, at the COP28 summit in Dubai, promised that Japan will end new construction at home of unabated coal fired power plants, in a show of clearer determination than in the past toward achieving net-zero.
Kishida has also pledged that Japan will issue the worldâ€™s first government transition bond with international certification. Japanese officials say Japan aims to fund 20 trillion yen ($135 billion) over the next 10 years to promote private sector investment worth 150 trillion yen ($1 trillion).
Japan will contribute to the expansion of lending capacity totaling about $9 billion through the provision of credit enhancements to the World Bank and the Asian Development Bank, and will also make a separate contribution of the new fund of the African Development Bank, Kishida said.
Associated Press / ABC
PT Rig Tenders Indonesia Tbk Sustains Positive Performance Growth Until June 30, 2023
Telegraf – PT Rig Tenders Indonesia Tbk (RIGS) continues to register positive performance growth until June 30, 2023.
RIGS successfully garnered a profit of IDR 62.51 billion, a 74.58% increase from the same period the previous year, amounting to IDR 35.80 billion.
According to the financial report, the company’s revenue also grew by 10.44% to reach IDR 341.70 billion, up from the previous IDR 309.37 billion.
“Director of RIGS, Mr. Iriawan Hartana, conveyed this information during a public presentation in Jakarta on November 23, 2023.”
“The company will continue to strive to strengthen its position in the national shipping industry,” said Mr. Iriawan.
He added that the company will continue to develop services that meet market needs while maintaining the distinctive features of the company.
“The company will also continue to explore the possibility of engaging in strategic alliances that benefit our working partners,” added Mr. Iriawan Hartana.
As for the work program in 2023, the company has outlined several initiatives:
- Changing the ownership status of the company’s shares from Foreign Direct Investment (PMA) to Domestic Direct Investment (PMDN) after the share acquisition by PT Surya Indah Muara Pantai.
- Changing the currency in the financial statements from USD to IDR starting from July 2022.
- Changing the ownership structure of the subsidiary Grundtvig Marine, namely PT Batuah Abadi Lines, to directly become a subsidiary of PT Rig Tenders Indonesia, Tbk.
- Implementing sustainable Corporate Social Responsibility (CSR) programs.
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