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Research on economic risk early-warning of China's overseas investment of coal-fired power generation: Take Indonesia as an example

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  • Kang, Xuhua
  • Zhang, Jingchao
  • Zhang, Huaming
  • Li, Shenzhao
  • Zhang, Yuzheng
  • Zhang, Kai
  • Li, Danqing

Abstract

Indonesia is currently the country with the largest amount of overseas investment in China's coal-fired power, but it turns out a high frequency for the economic risks. To help Chinese coal-fired power enterprises avoid the economic risks, this article comprehensively evaluates it of the coal-fired power projects in different regions of Indonesia during 2019-2022. The findings indicated that there will still be some profit margins in the Indonesian coal power market during 2019-2022 but with the increase of coal power investment projects, the development space will be gradually shrinking until the saturation of coal power construction appears. Besides, the coal price, which is expected to continue to rise, is likely to become a core indicator of the entire coal-fired power sector. The attractiveness of coal power investment in Java-Bali and Kalimantan is insufficient. There are still some investment risks in Sumatra. Sulawesi and Maluku-Papua show the potential investment space.

Suggested Citation

  • Kang, Xuhua & Zhang, Jingchao & Zhang, Huaming & Li, Shenzhao & Zhang, Yuzheng & Zhang, Kai & Li, Danqing, 2021. "Research on economic risk early-warning of China's overseas investment of coal-fired power generation: Take Indonesia as an example," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 298-309.
    • Handle: RePEc:eee:streco:v:56:y:2021:i:c:p:298-309
    DOI: 10.1016/j.strueco.2020.12.003
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