The so-called electricity markets were created to help private capital, not people. It is time that we wind up such bogus electricity markets and return all such public services to the people, to be run cooperatively for their benefit.
The price of electricity has risen astronomically in Europe over the last two years: by four times over the previous year and 10 times over the last two years. The European Union (EU) has claimed that this rise in prices is due to the increase in the price of gas in the international market and Russia not supplying enough gas. This raises the critical question: Why should, for example, the German electricity price rise four times when natural gas contributes around one-seventh of its electricity production? Why does the UK, which generates 40 percent of its electricity from renewables and nuclear plants, and produces half the natural gas it consumes, also see a steep rise in the price of electricity? All this talk of blaming Russia for the recent increase in gas prices masks the reality that the electricity generators are actually making astronomical windfall profits. The poorer consumers, already pushed to the wall by the pandemic, face a cruel dilemma: With electricity bills likely to make up 20-30 percent of their household budget during winter, should they buy food or keep their houses warm?
This steep rise in electricity prices is the other side of the story of the so-called market reforms in the electricity sector that have taken place over the last 30 years. The cost of electricity is pegged to the costliest supply to the grid in the daily and hourly auctions. Currently, this is natural gas, and that is why electricity prices are rising sharply even if gas is not the main source of electricity supply to the grid. This is market fundamentalism, or what the neoclassical economists call marginal utility theory. This was part of Augusto Pinochet’s electricity sector reformsthat he introduced in Chile during his military dictatorship there from 1973 to 1990. The guru of these Pinochet reforms was Milton Friedman, who was assisted by his Chicago Boys. The principle that electricity price should be based on its “marginal price” even became a part of Pinochet’s 1980 constitution in Chile. The Chilean reforms led to the privatization of the country’s electricity sector, which was the objective of initiating these reforms.
It was the Chilean model that Margaret Thatcher copied in the UK, which then the EU copied. The UK dismantled its Central Electricity Generating Board (CEGB) that ran its entire electricity infrastructure: generation, transmission, and bulk distribution. This move also helped the UK shift away from domestic coal for its thermal power plants, breaking the powerful coal miners’ union. These were also the Enron market ‘reforms’ in California, leading to the summer meltdown of its grid in 2000-2001.
The European Union banked heavily on natural gas as its preferred fuel to bring down its greenhouse gas emissions; it also ramped up renewables—solar and wind power—and phased out lignite and coal. The EU has imposed a series of sanctions on Russia, made public its plans to impose further sanctions on the country, and seized about 300 billion euros of Russia’s reserves lying in EU banks. The EU has also said that it will cut down on Russia’s oil and gas supplies. Not surprisingly, Russia has sharply reduced its gas supplies to the EU. If the West thought it could weaponize its financial power, why did it think that Russia would not retaliate by doing the same with its gas supplies to the EU?
Due to the Russian supplies of natural gas to Western Europe falling, the price of LNG has risen sharply in the international market. Worse, there is simply not enough LNG available in the market to replace the gas that Russia supplied to the EU through its pipelines.
With the price of gas rising by four to six times in the last few months, the price of electricity has also risen sharply. But as only a fraction of the electricity is powered by gas, all other sources of energy—wind, solar, nuclear, hydro, and even dirty coal-fired plants—are making a killing. It is only now that the EU and the UK are discussing how to address the burden of high electricity prices on consumers and the windfall profits made by the electricity generators during this period.
It is not only the EU and UK consumers who are badly hit. It is also the European and British industries. Stainless steel, fertilizer, glass making, aluminum, cement, and engineering industries are all sensitive to input costs. As a result, all these industries are at risk of shutting down in the EU and the UK.
Former Greek Finance Minister Yanis Varoufakis in his article “Time to Blow Up Electricity Markets” writes, “The European Union’s power sector is a good example of what market fundamentalism has done to electricity networks the world over… It’s time to wind down the simulated electricity markets.” The rest of the world would do well not to follow the EU’s example.
Why then is Indian Prime Minister Narendra Modi’s central government rushing into this abyss? Did it not learn from last year’s experience when, after a coal shortage, the prices in the electricity spot market went up to Rs 20 ($0.25) per unit before public outcry saw it capped at Rs 12 ($0.15)? So why push again for these bankrupt policies of market fundamentalism in the guise of electricity reforms? Who will benefit from these market reforms? Certainly, neither the consumers nor the Indian state governments, which bear the major burden of subsidizing electricity prices for their consumers.
Prabir Purkayastha is the founding editor of Newsclick.in, a digital media platform. He is an activist for science and the free software movement.
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.
OJK Holds Discussion and Socialization on Fulfillment of WPPE, WPEE, WMI, WAPERD Licensing Obligations
Telegraf – The Financial Services Authority (OJK) has released the latest data as of 07 November 2023 at the Discussion & Socialization event on Fulfillment of WPPE, WPEE, WMI, WAPERD Licensing Obligations.
This meeting took place on November 8 2023 at the OJK Mataram building, NTB, with the aim of providing a better understanding to permit holders and prospective permit holders.
The main resource person came from the OJK Capital Market Licensing Directorate.
Naomi Saulina Rentaria Rambe, Senior Analyst Deputy Director of Individual Licensing, Supporting Professionals and Capital Market Supporting Institutions 1.
Devy Arveida, Analyst Deputy Director of Individual Licensing, Supporting Professionals and Capital Market Supporting Institutions 1.
Also present were important figures such as Umar Hidayat, Deputy Head of the NTB OJK Office, GB Ngurah Putra Sandiana, Head of the NTB BEI Representative Office, and Lucky Hisar Manurung, Chair of the Bali Nusa Raya PROPAMI Region, along with license holders from the banking, capital markets and universities in NTB.
In the context of the growth of the capital markets sector, OJK has issued a series of regulations, including;
- OJK Regulation Number 31/POJK.04/2018 concerning Licensing of Investment Manager Representatives,
- OJK Regulation Number 17/POJK.04/2019 concerning Licensing of Mutual Fund Securities Selling Agent Representatives, and
- OJK Regulation Number 20/POJK.04/2018 concerning Licensing of Underwriter Representatives and Securities Broker-Dealer Representatives.
- OJK Regulation Number 22/POJK.04/2016 concerning Licensing Segmentation of Securities Broker-Dealer Representatives
The General Chair of PROPAMI, NS Aji Martono, commented on this development, stating that licensing for capital market players is a crucial step to ensure the integrity of the capital market and provide legal certainty and protection to investors.
OJK emphasizes the importance of licensing for various roles in the capital market, such as WMI (Deputy Investment Manager), WAPERD (Representative Mutual Fund Securities Selling Agent), and WPPE (Deputy Underwriter).
License holders must meet strict requirements, including certification of expertise and maintaining moral integrity.
In addition, permit holders are required to work for financial institutions in Indonesia and may not work for more than one securities company or other financial services institution.
All work activities must be reported to the OJK.
OJK provides a platform, namely Sprint (Individual Person Licensing System), as the main means for applying for new permits or extending permits.
Tutorials on YouTube OJK are also provided to make the licensing process easier.
The importance of fulfilling licensing obligations is the main key in ensuring integrity and security in the Indonesian capital market sector.
The permit holder’s commitment to comply with statutory regulations is an important basis for maintaining the credibility of the capital market in the eyes of investors.
It is hoped that strict regulations will strengthen and develop the Indonesian capital market in the future.
Legit Group Secures Rp 205.3 Billion in Series A Funding for F&B Business Expansion
TELEGRAF – Legit Group, a multi-brand cloud kitchen conceptor and operator, has announced the success of its series A funding round, raising a total of US$13.7 million (IDR 205.3 billion) from several investors. The funding was led by MDI Ventures, the venture capital arm of PT Telkom Indonesia Tbk, and followed by Sinar Mas Digital Ventures (SMDV), East Ventures, and Winter Capital. In 2021, Legit Group also successfully raised seed funding worth US$3 million (IDR 43 billion) from East Ventures and AC Ventures, JAKARTA, TUESDAY (11 APRIL 2023).
Founded in 2021, Legit Group currently operates four well-known brands, including Pastaria, Sei’Tan, Sek Fan, and Ryujin, located in over 30 locations in Jabodetabek. Interestingly, Legit Group’s brands do not have any offline locations, but operate using a cloud business model.
This new funding adds optimism to Legit Group to dominate the market through the right marketing strategy in the F&B industry. This confidence is supported by the strong traction the company has gained since the initial funding round, with sales reaching about three times in one month, and launching a new brand.
Bram Hendrata, Chairman of Legit Group said, “We are excited to have a strong group of investors to support us in creating a brand that carries the vision of ‘Food for Everyone’. Through the funding obtained from MDI Ventures, this can strengthen Legit Group’s commitment to bringing more food to various places, while continuing to innovate and improve the technology we have to achieve more efficient operating systems,” said Bram, who has been a veteran in the F&B industry for 15 years.
Currently, Legit Group’s business sector is rapidly growing. While most regular cloud kitchen business owners focus on improving their ability to serve more consumers in new areas, Legit Group has seen the potential for new generation F&B technology that focuses more on developing F&B brands by applying technology to maximize profits. Therefore, Legit Group believes that this focus will provide a competitive advantage in the cloud kitchen market.
Donald Wihardja, CEO of MDI Ventures said, “Legit Group’s founders’ experience, who have succeeded in the F&B business for 15 years, as well as their ability to develop innovative and effective products and marketing strategies, make MDI Ventures more confident that our support as investors will help strengthen their position in the F&B industry and accelerate their business growth. This collaboration is expected to create positive synergy and greater success for both parties. This investment is also an effort by MDI Ventures to provide a positive social impact on the growth of the agriculture sector in Indonesia.”
Amidst the macroeconomic conditions that often demand startup businesses to remain profitable, Legit Group has set its top priority to achieve economic balance while continuing to strive for a healthy economic unit. To achieve this goal, Legit Group has announced its plan to expand in 2023, targeting Jabodetabek and other cities that have great potential for delivery market, after 95% of Legit Group’s outlets were previously spread across several locations in Jakarta.
“Through the support from various parties, strategic approaches, and our commitment to product quality excellence, we believe we can continue to produce products that…
MKI Teams up with Enlit Asia to Host the Most Influential Electricity and Energy Sector Meeting in ASEAN
In order to promote the development of clean energy technology in the ASEAN region, the most influential electricity and energy sector meeting in ASEAN
Telegraf – In order to promote the development of clean energy technology in the ASEAN region, the most influential electricity and energy sector meeting in ASEAN will once again be held in Jakarta in 2023, coinciding with Indonesia’s Chairmanship of the ASEAN Summit. This meeting is a partnership between Enlit Asia and the Indonesian Electricity Society (MKI), which will hold two leading events in the electricity and energy business and industry in the ASEAN region, with the support of PT PLN (Persero) as Utility Host and the Ministry of Energy and Mineral Resources.
The Enlit Asia 2023 event and the 78th Indonesian National Electricity Day (HLN 78) will be jointly opened on November 14, 2023, at the Indonesia Convention Exhibition (ICE). This combined event continues the successful partnership that brought the first Powergen Asia to Indonesia and the 73rd Indonesian National Electricity Day in 2018.
This cooperation will bring together more than 350 exhibition participants from around the world who will showcase the latest technologies and innovations that support energy transition throughout ASEAN. It is expected that 12,000 visitors from all over Indonesia and ASEAN will benefit from over 75 hours of free content provided by technology providers and the latest solutions, as well as case studies on the use of the latest technology in the field by IPPs and electric utilities.
This meeting is being held to support energy transition in the ASEAN region and will focus on commercial and strategic issues that will accelerate the transition to a cleaner and more sustainable power system. Over 150 leading speakers in the industry will share their insights simultaneously, where the evolution of traditional energy systems, integration of next-generation clean generation technology, and frameworks and financing supporting this transition will be the focus of the discussion.
With more and more companies participating in the exhibition, including those focused on Carbon Capture and Storage, Hydrogen technology, Energy Storage, Smart Grid, and RE integration solutions including Solar PV and Wind Energy, as well as Nuclear power generation technology, the event is further cementing its position as a leading industry meeting on the ASEAN calendar.
“We are delighted to return to Jakarta and partner with MKI once again. Indonesia is a very important market in the ASEAN region, with the highest electricity demand, projected growth, and active steps being taken to achieve sustainability targets and renew network infrastructure. Partnering with the Indonesian National Electricity Day to see Enlit Asia’s regional reach and capabilities unite key industry stakeholders from across ASEAN, supported by Indonesia’s strong sense of taste, is very important. In 2023, we can promise that this event will fully reflect the strong enthusiasm to drive ASEAN energy transition, supported by the investment appetite of governments, regulators, utilities, and IPPs in this region,” said Richard Ireland, Chief Executive Officer of Clarion Events Asia.
Meanwhile, Arsyadany G Akmalaputri, Secretary General of MKI, explained that this year’s Indonesian National Electricity Day is the third time that MKI has partnered with Enlit Asia in organizing conferences and exhibitions. The 78th Indonesian National Electricity Day and Enlit Asia 2023 event will carry the theme “Strenghtening ASEAN Readiness in Energy Transition: Your Guide to The Energy Transition in Asia”. This year’s program will be different from previous ones, where support for the world’s commitment to implementing energy transition towards cleaner energy has been declared.
In line with Indonesia’s mandate as Chair of ASEAN, ASEAN will continue to be the epicenter of its strong and empowered society growth. The event organized by MKI and Enlit Asia is highly relevant given the scope of exhibition and conference participants
PGEO Boosts Net Profit in 2022 through Efficiency Programs
Telegraf – PT Pertamina Geothermal Energy Tbk. (PGE) (IDX: PGEO), a subsidiary of Pertamina engaged in the geothermal sector, achieved a positive performance in 2022. This positive performance was due to the efficiency program, steam and electricity sales, and other revenue contributions that led to a 49.7 percent increase in the company’s net profit compared to 2021.
The increase in profit was recorded in the company’s audited financial report, which was publicly released on March 30, 2023. In the report, PGE recorded a net profit of USD 127.3 million in 2022, significantly higher than its 2021 achievement of USD 85 million.
Throughout 2022, the company recorded a 4.7 percent year-on-year (yoy) increase in operational revenue, contributing to a USD 17 million increase in revenue. One of the contributing factors was the higher selling price of steam and electricity, referring to the US Producer Price Index (PPI) and Consumer Price Index (CPI). Additionally, the increase in profit was supported by the significant reduction of operational costs as a result of the company’s efficiency program. From the other revenue side, PGE also recorded carbon credit sales as a new revenue generator.
As part of PGE’s efforts to increase its installed capacity by 600 MW in 2027, the company is currently constructing the Lumut Balai Unit 2 Geothermal Power Plant with a capacity of 55 MW, which is expected to operate commercially by the end of 2024. Additionally, PGE has completed the Front End Engineering Design (FEED) for the Fluid Collection and Reinjection System (FCRS) facility. This phase is part of the project to develop the Hulu Lais Unit 1 and 2 Geothermal Power Plants with a total installed capacity of 2 x 55 MW, which is expected to operate commercially in 2026.
Moving forward, the company will focus on optimizing its existing geothermal assets. One way to do this is by increasing production capacity through co-generation technology, utilizing the available hot water (brine) to generate electricity. Co-generation technology has already been implemented at the Lahendong Geothermal Power Plant, utilizing the residual brine from steam production to generate 700 KW of power.
From an ESG perspective, in 2022, PGE achieved an ESG Rating 2 from Sustainable Fitch. This rating indicates that PGE is in the good performance category in terms of ESG management. The ESG initiatives carried out by PGE in 2022 include several programs, such as co-generation technology (brine to power) utilization in the Lahendong area, emission reduction and carbon credit sales, biodiversity programs, occupational health and safety management, corporate social responsibility (CSR), enterprise risk management (ERM), cyber security, and the implementation of an anti-bribery management system (SMAP).
The Urgency of Increasing Competence in Achieving Success in Investing in the Capital Market
TELEGRAF – GI BEI Institut Asia Malang Presents: “The Urgency of Increasing Competence in Achieving Success in Investing in the Capital Market” with Dr. Titis Sosro Tri Raharjo, M.M., CRP, CIB,CSA, CSC, CES, RFC, CRMP, CPIA, C.Me, CPRM as Guest Lecturer
Join us on Tuesday, March 28th, 2023 from 09.00 AM to 12.00 PM WIB at R. Theater Lt.1 Kampus Pusat Institut Asia Malang for a special guest lecture on the importance of improving competence in achieving investment success in the stock market. The lecture will be presented by Dr. (Cand.) Titis Sosro Tri Raharjo, M.M., CRP, CIB,CSA, CSC, CES, RFC, CRMP, CPIA, C.Me, CPRM, who is the Treasurer General of PROPAMI.
The purpose of this guest lecture is to provide participants with better knowledge and understanding of the stock market, which is a form of investment that can provide significant returns but also comes with high risks. Therefore, investors need to have sufficient competence in making investment decisions and choosing the right investment instruments.
Through this guest lecture, participants will gain a better understanding of the stock market and how to achieve success within it. The lecture will cover various effective and efficient investment techniques and strategies, allowing participants to have a deeper understanding of the stock market.
In addition, participants will have the opportunity to directly ask questions to the speaker, Dr. (Cand.) Titis Sosro Tri Raharjo, M.M., CRP, CIB,CSA, CSC, CES, RFC, CRMP, CPIA, C.Me, CPRM, who has extensive experience and knowledge in the field of stock market investment. This will enable participants to deepen their understanding of investment in the stock market.
This guest lecture is suitable for anyone who wants to improve their knowledge and competence in investing in the stock market. Don’t miss this opportunity to learn from an expert in the field of stock market investment. Register now to join the guest lecture on “Urgensi Peningkatan Kompetensi Dalam Meraih Sukses Berinvestasi di Pasar Modal” by GI BEI Institut Asia Malang on March 28th, 2023.
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