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On record

This profile is no longer actively maintained, with the information now possibly out of date

Send feedback on this profile
Download as PDF
By: BankTrack
Created before Nov 2016
Last update: 2021-05-11 00:00:00

Contact:

climate@banktrack.org


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Adaro's Rio Tinto coal mine. Photo: D. Sewell via Flickr (CC BY 2.0)
Sector Coal Mining , Coal Electric Power Generation
Headquarters
Ownership
listed on Indonesia Stock Exchange

Adaro Energy's major share holders are Adaro Strategic Investment (43.91%) and Garibaldi Thohir (6.18%).

Subsidiaries
Adaro Mining – Indonesia
Adaro Power – Indonesia
Kestrel Coal Resources – Australia
PT Adaro Indonesia – Indonesia
Website http://www.adaro.com

About Adaro Energy

Adaro Energy, established in 2004, is a large Indonesian coal mining company. It is a vertically integrated energy producer with businesses in coal, energy, utilities and supporting infrastructure. Adaro Energy consists of eight business units: Adaro Mining, Adaro Services, Adaro Logistics, Adaro Power, Adaro Land, Adaro Water, Adaro Capital and Adaro Foundation. Adaro also operates in Australia, where it owns the Kestrel coal mine. The company annually produces over 54 million tonnes of coal. The company is a major supplier to the global thermal coal market. Its coal is used throughout Europe, Asia, and the Americas.

Adaro Energy has an installed coal power capacity of 60 MW via its subsidiary MSW, 200 MW via joint venture TPI and plans, via joint venture BPI, 2,000 MW of coal power capacity in the Batang region of Indonesia.

Adaro operates the largest single-site coal mine in South Kalimantan under a Coal Cooperation Agreement with the Government of Indonesia. The company controls around 31,379 hectares of land, the equivalent of 58,640 football fields.

Latest developments

Adaro subsidiary seeks up to US$ 58 million from IPO

2021-12-14 00:00:00

Adaro signs USD 400 million loan agreement with consortium of 13 banks

2021-04-23 00:00:00

Why this profile?

Adaro's annual coal production of over 54 million tonnes makes the company responsible for the emissions of an estimated 108 million tonnes of CO2, thereby severely contributing to the adverse impacts of climate change.

Impacts

Environmental and climate impacts

Climate impacts Adaro's annual production of coal exceeds 54 million tonnes. This makes the company responsible for the emittance of an estimated 108 million tonnes of CO2 into the earth's atmosphere.

Massive flood in South Kalimantan In January 2021, South Kalimantan was affected by massive flooding that killed at least 21 people and displaced more than 110,000 people away from their homes. According to LAPAN (National Institute of Aeronautics and Space of Indonesia), up to 200,000 hectares of area in South Kalimantan was flooded.  Apart from the extreme rainfall, the floods have been linked with degraded land in the water catchment area. The mining operations have caused the loss of trees in the water catchment area. Trees are essential to retain water and prevent soil erosion that could result in heavy silting of rivers during rains.

Adaro operates the largest single-site coal mine in South Kalimantan and is one of the mining companies that has caused the degradation of the Barito River catchment. Nine areas were flooded around Adaro’s concession. The Indonesian National Police is currently considering opening an investigation into whether mining activities caused the massive flood.

Other impacts

Tax avoidance The 2019 Global Witness report, Taxing Times for Adaro, found that Adaro Energy’s use of subsidiaries in low-tax countries could have the effect of reducing the amount of tax paid in Indonesia. The report argues Adaro Energy’s use of its Singapore coal trading arm, Coaltrade Services International, may have allowed the company to pay USD 125 million less in tax between 2009 and 2017. The report argues a further USD 45 million could have been paid in Indonesian taxes if Adaro Energy didn’t operate subsidiaries in Malaysia and Mauritius.

Governance

Applicable norms and standards

1966 United Nations Resolution 2158 (XXI)

Timeline

Adaro subsidiary seeks up to US$ 58 million from IPO

2021-12-14 00:00:00

 PT Adaro Minerals Indonesia prospectus states it wants to raise up to 831.67 billion rupiah (US$ 57.83 million) through an IPO in December 2021 to cover the maintenance costs of its mining equipment. (The Jakarta Post)

Adaro signs USD 400 million loan agreement with consortium of 13 banks

2021-04-23 00:00:00

On April 23, 2021, PT Adaro Indonesia, signed a Loan Facility Agreement in the amount of USD 400 million with several banks. The proceeds from this Loan Facility will be used to make early repayments of all Adaro Indonesia’s outstanding loans (Adaro press release).

2,000 MW coal power plant expected to be completed end of 2021

2020-10-20 00:00:00

PT Adaro Energy expects the coal power plant (PLTU) in Batang, Central Java with a capacity of 2x1,000 mega watts (MW) to start operating by the end of 2021. Adaro's Managing Director Garibaldi Thohir admitted that there were a number of technical obstacles in the completion of the Batang PLTU project (CNBC Indonesia).

Adaro Energy in talks with Shenhua to develop coal-to-gas project

2016-02-23 00:00:00

PT Adaro Energy is in talks with its partner Shenhua Overseas Development and Investment Ltd of China, to develop coal-to-gas and coal-to-liquid projects in Indonesia. Further information read here.

Adaro Energy to reach deal on two power plants

2015-11-12 00:00:00

Major coal miner Adaro Energy is set to conclude deals for two power plant projects this year worth around USD 4.55 billion in total. Adaro Energy's legal director Syah Indra Aman said that his company would source syndicated loans to finance a 2x100 megawatt coal-fired power plant project in South Kalimantan (The Jakarta Post).

 

Financiers

Between 2016 and 2018 23 financial institutions financed a total of USD 3.813 billion in corporate loans to Adaro Energy (Coalexit.org Database). See below for a specified overview.

In Nov 2019 PT Adaro Indonesia (a subsidiary of Adaro Energy) issued a USD 750 million bond, which was underwritten by BNY Mellon, DBC, Citi, UBS, MUFG and OCBC. See below for more details.

Adaro has a total of USD 2 billion loans maturing in 2021 and has started seeking lenders to refinance its debt. In April 2021, Adaro signed a five year loan agreement of USD 400 million with a consortium of 13 banks. See below for more details.

Related projects

Projects

There are no projects active for Adaro Energy now.
on record

IndoMet Coal Project Indonesia

Coal Mining
on record

Batang Coal Power Project Indonesia

Coal Electric Power Generation

News

| |
Type:
Year:
blog
external news
our news

Standard Chartered Bank hit with protests on opposite sides of the world as fossil fuel vote approaches

It's the only UK bank facing a shareholder-proposed climate change resolution at its AGM this year
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2022-03-29 | United Kingdom | Market Forces
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Adaro's subsidiary seeks up to $58 million from IPO

2021-12-14 | The Jakarta Post
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2021-10-28 | Market Forces
blog
external news
our news

Standard Chartered shareholders challenge bank to live up to net zero promise on fossil fuels

2021-10-07 | Market Forces
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2021-09-22 | Bank of Coal coalition
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blog
external news
our news

Standard Chartered accused of hypocrisy over climate change

2021-05-10 | Financial Times
blog
external news
our news

Indonesian police may probe coal miners over deforestation-linked floods

2021-02-18 | Mongabay
blog
external news
our news

Environmentalists consider suing govt over South-Kalimantan flood

2021-01-31 | The Jakarta Post
blog
external news
our news

With new law, Indonesia gives miners more power and fewer obligations

2020-05-13 | Mongabay
blog
external news
our news

Is this what a ‘Golden Taxpayer’ looks like? Indonesian coal company and its investors feel the heat

2019-07-04 | Global Witness
blog
external news
our news

Asia's coal developers feeling left out by cold shoulder from banks

2019-06-25 | Reuters
blog
external news
our news

Indonesia’s PT Adaro: Financing for new coal projects is becoming an issue

2019-05-21 | IEEFA
blog
external news
our news

Film exposes Indonesia’s coal industry abuses

2019-04-21 | The Asia Times
blog
external news
our news

Indonesia's Adaro Energy to buy Rio Tinto coal mine for $2.25bn

2018-03-28 | Nikkei Asian Review
blog
external news
our news

Adaro Energy chief bullish on IPP projects

2016-06-29 | Nikkei Asian Review
blog
external news
our news

Indonesia's Adaro digs for $370m refinancing

2015-10-09 | Global Capital
blog
external news
our news

Adaro Secures $540m Loan for S. Kalimantan Power Project

2015-10-09 | Jakarta Globe
blog
external news
our news

Indonesia's Adaro looks to refi as Indorent picks four

2015-09-24 | Global Capital
blog
external news
our news

Swallowed by coal: UK profits from Indonesia's destructive mining industry

2013-10-30 | The Guardian
blog
external news
our news

J-Power, Partners Delay $4 Billion Indonesia Coal Power Plant

2013-10-04 | Bloomberg Businessweek
blog
external news
our news

UK banks financing coal boom destroying Borneo rainforests

2013-10-01 | London | World Development Movement

Documents

Type:
Year:
csr policies
2018-03-05 00:00:00

Code of conduct

2018-03-05 00:00:00 | Adaro Energy
annual reports
2021-04-12 00:00:00

CSR Report 2020

2021-04-12 00:00:00 | Adaro Energy
annual reports
2021-04-12 00:00:00

Annual report 2020

2021-04-12 00:00:00 | Adaro Energy
ngo documents
2018-05-31 00:00:00

The Health Cost of Coal in Indonesia

2018-05-31 00:00:00 | International Institute for Sustainable Development
company documents
2018-12-31 00:00:00

Adaro Group's Coal Resources and Reserves

2018-12-31 00:00:00 | Adaro
annual reports
2019-07-11 00:00:00

Annual report 2018

2019-07-11 00:00:00 | Adaro Energy
ngo documents
2019-07-04 00:00:00

Taxing Times for Adaro

2019-07-04 00:00:00 | Global Witness
ngo documents
2017-12-07 00:00:00

The Big Shift - Banks must invest our money in a cleaner future

2017-12-07 00:00:00 | Christian Aid
annual reports
2016-03-24 00:00:00

Annual report 2015

2016-03-24 00:00:00 | Adaro Energy
annual reports
2015-04-01 00:00:00

Annual report 2014

2015-04-01 00:00:00 | Adaro Energy
annual reports
2014-06-15 00:00:00

Sustainability report 2013

2014-06-15 00:00:00 | Adaro Energy
annual reports
2014-04-10 00:00:00

Annual report 2013

2014-04-10 00:00:00 | Adaro Energy
ngo documents
2013-09-30 00:00:00

Banking while Borneo burns

How the UK financial sector is bankrolling Indonesia's fossil fuel boom
2013-09-30 00:00:00 | World Development Movement

Media




Links

Adaro Energy's corporate social responsibility web page

http://www.adaro.com/pages/read/9/38/Environmental%20Responsibility

The Carbon Brief - profile Indonesia

https://www.carbonbrief.org/the-carbon-brief-profile-indonesia

Adaro Energy campaign page - Market Forces

https://www.marketforces.org.au/research/indonesia/adaro/
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