2025-12-18 07:19

JAKARTA, Dec 18 (Reuters) - Indonesia needs an estimated $31 billion of investment by 2030, and a total of $92 billion by 2050, to finance its switch to greener energy in the captive power sector, the Just Energy Transition Partnership (JETP) said in a report. The captive power sector, which covers electricity generation developed by industries for their own utilisation, has grown rapidly in recent years in the Southeast Asian country, particularly in nickel industrial estates. Sign up here. The Indonesian JETP Secretariat estimated that captive power capacity reached 25.9 GW in 2024, with over 75% powered by coal, according to the report. Almost 11 GW of capacity is currently in various stages of development, and most of those projects will use coal as well. The estimated investments to 2030 are focused on deployment of renewable power and battery storage, led by solar PV and hydropower, the report said. It also recommended switching to gas as a fuel in some cases, making systems more efficient and improving the integration of renewables. "As a result, by 2030, renewable power is projected to comprise 34% of captive generation, from 9% in 2024, with this share rising to 55% by 2040 and over 80% by 2050," the report said, adding that such adoption would achieve 75% lower carbon emissions in 2030 compared with a baseline scenario. The captive sector was initially excluded from Indonesia's 2023 decarbonisation policy plan under JETP, which was set up as a G7-backed funding initiative to help developing nations cut carbon emissions. Earlier this year, the U.S. withdrew from its JETP deals with Indonesia, South Africa and Vietnam. The JETP Captive Scenario report is not a binding document, but it is typically produced in coordination with government officials. Indonesia, one of the world's top producers of coal, has secured over $20 billion in financing pledges under the JETP scheme, but deployment has been slow. "As the JETP funds represent only a fraction of the total investment needs, realising the outlook depends on mobilizing much greater funding from diverse sources of capital," the report said. Separately, the JETP Secretariat has estimated $97 billion of investment is needed to clean up Indonesia's main, on-grid electricity sector by 2030. https://www.reuters.com/sustainability/climate-energy/jetp-estimates-indonesia-needs-92-billion-by-2050-decarbonising-captive-power-2025-12-18/

2025-12-18 07:14

KAMPALA, Dec 18 (Reuters) - Uganda plans to cut its domestic debt issuance by 21.1% in the financial year starting July from the previous period to help trim its ballooning public debt, the finance ministry said in a budget paper seen by Reuters on Thursday. A total of 9 trillion shillings ($2.53 billion) worth of Treasury bills and bonds will be issued in the 2026/27 (July-June) financial year, compared to 11.4 trillion shillings in the previous year, according to the paper. Sign up here. "This reduction reflects government's intention to avoid crowding out of the private sector, curb the rising debt-to-GDP ratio, and address the growing burden of interest payments relative to revenues," the ministry said in the paper. Interests payments on Uganda's public debt are projected to swallow nearly a third of all domestic revenues in the 2026/27 fiscal year, according to the ministry. As a percentage of gross domestic product, public debt rose to 51% in the year to June from 46.8% in the previous period. "Such elevated debt service burdens shrink fiscal space, leaving fewer resources available for discretionary spending in high-multiplier, growth-enhancing sectors," the ministry said in the paper. Uganda's total public debt stood at $32.3 billion as of June, up 26.2% from the same period 12 months earlier. Economic growth was projected in the paper to climb to 10.4% in the 2026/27 fiscal year from 6.6% in the previous period. "This robust growth outlook will be primarily driven by the commencement of oil production, which is expected to generate substantial revenue and stimulate productivity through strong intersectoral linkages," the paper said. Uganda plans to start commercial crude oil production from fields in the country's west in 2026. ($1 = 3,560.0000 Ugandan shillings) https://www.reuters.com/world/africa/uganda-says-trim-debt-issuance-by-21-202627-fy-2025-12-18/

2025-12-18 07:04

Dec 18 (Reuters) - U.S. crypto exchange Coinbase (COIN.O) , opens new tab has appointed former British finance minister George Osborne to run its internal advisory council, the company said on Thursday, as it aims to expand its influence with governments beyond the U.S. The crypto industry has become a major lobbying force in the U.S. in recent years. Coinbase now wants to increase its influence on policy-making outside the U.S., including in Britain and the European Union, the company's chief policy officer Faryar Shirzad told Reuters. Sign up here. Osborne, who joined Coinbase as an adviser in January 2024, will "play a much more active role in helping us with policymakers around the world," Shirzad said. He will be based in London. The former finance minister, who served from 2010 until he stepped down after the 2016 Brexit referendum, has taken on a wide-ranging portfolio of jobs in the private sector. On Tuesday, U.S. AI company OpenAI announced it had hired Osborne to help its overseas data centre expansion. He is also the chair of the British Museum, a partner at investment bank Robey Warshaw LLP, and the chair of asset manager Lingotto Investment Management. "Chairing the Global Advisory Council will give me more opportunity to learn about the revolution that blockchain, stablecoins and tokenisation are bringing to our financial system," Osborne said in a written statement. The crypto industry, including Coinbase, collectively donated more than $245 million to support pro-crypto candidates, including President Donald Trump, in the 2024 U.S. elections, according to Federal Election Commission data. Following Trump's election, the U.S. government and regulators have taken steps to support crypto, including enacting new legislation to facilitate the use of stablecoins and dropping key lawsuits against Coinbase and other crypto companies. The industry has said that it was unfairly targeted by U.S. regulators, although financial watchdogs have called for more oversight. In the UK, Coinbase's aims include promoting stablecoin payments and so-called "tokenised" assets in capital markets, as well as clarity on tax, Shirzad said. https://www.reuters.com/sustainability/boards-policy-regulation/coinbase-appoints-uk-ex-finance-minister-george-osborne-run-advisory-council-2025-12-18/

2025-12-18 07:00

US inflation data increase less than expected Trump says next Fed chair to favour lower rates 'by a lot' BoE cuts rates in tight 5-4 vote, ECB holds rates steady Markets look for catalysts from key central bank decisions NEW YORK/LONDON, Dec 18 (Reuters) - The dollar lost ground against the Japanese yen and Swiss franc on Thursday after data showed a lower-than-expected rise in U.S. inflation, while the euro eased after the European Central Bank held interest rates steady. The U.S. Consumer Price Index rose 2.7% year-on-year in November, according to Labor Department data, compared with a 3.1% increase forecast by economists polled by Reuters. Sign up here. The dollar weakened 0.12% to 155.50 against the Japanese yen and was down 0.14% to 0.79405 against the Swiss franc . "The margin of error shouldn't be this great and it is questionable whether what we got in this release is going to make its way into the more traditional data collection discussion," said Marvin Loh, senior global market strategist at State Street in Boston. "One of the things that ends up being a challenge in terms of changing expectations significantly is that we're already pricing in a Fed that gets to neutral within the next 12 months. So you either need to aggressively push against the neutral and/or start believing that there's a recession that will make you go below neutral and I don't think we're anywhere near there," Loh said. The longest federal government shutdown in U.S. history had impacted data collection for the inflation report. The Federal Reserve tracks the Personal Consumption Expenditures Price Index for its 2% inflation target. President Donald Trump said on Wednesday the next Fed chair will be someone who believes in lower interest rates "by a lot". All of the known candidates - White House economic adviser Kevin Hassett, former Fed Governor Kevin Warsh and current Fed Governor Chris Waller - advocate for interest rates to be lower than they are now. CENTRAL BANK MOVES The euro edged lower in choppy trading after the European Central Bank kept its policy rates steady and took a more positive view on a euro zone economy that has shown resilience to global trade shocks. The euro was last down 0.14% at $1.17240 against the dollar. "Today's meeting offered no new information to change our view on the most likely policy path or the surrounding risk balance," Barclays analysts led by Mariano Cena said in an investor note. "We continue to expect the ECB to remain on hold for the next two years and see the risk tilted towards lower, not higher, policy rates over our forecast horizon." The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, edged up 0.06% to 98.435. Sterling rose after the BoE delivered its fourth rate cut this year, although markets pushed back their expectations for further easing, with the next cut not fully priced until June, from April prior to the decision. Sterling strengthened 0.09% to $1.33846. "Interest rate markets have reduced their bets on further easing, likely on account of both the finely balanced nature of upcoming decisions and the Governor's comment that room for further reductions is becoming more limited. Two-year sterling swap rates are roughly five basis points higher," said Tom Priscott, FX trader at Investec. "The pound may have further room for upside as traders recalibrate their outlooks for 2026 through the afternoon," Priscott said. The Swedish and Norwegian central banks both kept their main interest rates on hold, in line with expectations. The Swedish crown was last down 0.29% at 10.8855 per euro, while Norway's crown was last down 0.52% at 11.9173 per euro. The Bank of Japan looks almost certain , opens new tab to raise short-term interest rates on Friday to 0.75% from 0.5% as high food costs keep inflation above the central bank's 2% target. https://www.reuters.com/world/asia-pacific/dollar-holds-gains-against-sterling-yen-central-bank-decisions-loom-2025-12-18/

2025-12-18 06:59

Better regulation for gold trading required, governor says Bank tackling baht volatility, rather than setting its value "Not a lot of ammunition left" after five rate cuts BANGKOK, Dec 18 (Reuters) - The Thai central bank is calling on the finance ministry to control gold trading after a surge in transactions helped drive up the value of the baht , its governor said on Thursday, adding that monetary policy could be further eased if needed after key rates were cut to a three-year low. The baht has gained 9.1% against the dollar so far this year to become Asia's second-best performing currency, adding to the problems of Southeast Asia's second-largest economy, which has been struggling with multiple challenges like U.S. tariffs, high household debt, a border conflict , opens new tab with Cambodia and political uncertainty ahead of elections on February 8. Sign up here. Gold trading flows have become a significant driver of currency movements, Vital Ratanakorn told a business forum. "On days when the baht strengthens sharply, gold trading transactions account for about half of the flows pushing the baht up," he said, adding that large gold dealers now represented trading volumes equivalent to roughly 50% of GDP. "The central bank is doing everything it can, expanding all measures as far as possible. We have the Foreign Exchange Act, but it doesn't cover the gold trading business. There needs to be someone to regulate the gold trade," he said. NO PLANS TO TAX GOLD TRANSACTIONS The central bank has said there are no plans to impose a tax on gold trading at the moment. Gold traders have opposed such a move, warning it would hammer the sector. Vitai also said the central bank would not impose taxes on capital inflows or outflows in another measure to tackle the baht's rapid appreciation. "We can't use overly drastic measures, such as imposing taxes as we did in 2010, which caused the market to crash immediately, or banning inflows and outflows," he added. Vitai reiterated that the central bank is taking action on the baht, with the aim of reducing volatility rather than dictating the baht's value. "The central bank wants the baht to weaken in line with economic conditions," Vitai said. "We manage it every day to ease volatility... but we cannot set the currency's level," he added. 'NOT A LOT OF AMMUNITION LEFT' While pledging readiness to cut interest rates further if necessary, Vitai said Thailand's monetary wiggle room was limited following five cuts totalling 125 basis points since October 2024. "We are ready to cut rates further if needed, but there's not a lot of ammunition left," he said, adding that very low rates would affect savings and would have little effect on inflation. Some economists are expecting another reduction at the BOT's next rate review on February 25. Despite negative inflation, Vitai said Thailand is not yet facing deflation, adding that structural issues will require targeted measures beyond rate cuts. The central bank will introduce loan guarantee schemes next week to spur credit and investment. The central bank forecast the economy to grow 2.2% this year and 1.5% next year. Last year's growth was 2.5%. Fiscal and monetary policies are moving in step, Vitai said, citing his close coordination with Finance Minister Ekniti Nitithanprapas. "I'm lucky to have a close relationship with the finance minister. Monetary and fiscal policies are well coordinated. The finance minister has never interfered in matters related to the policy interest rate," he added. https://www.reuters.com/world/asia-pacific/thai-central-bank-proposes-controls-gold-trade-ready-cut-rates-further-2025-12-18/

2025-12-18 06:44

Dec 18 (Reuters) - Russia launched a "massive" drone attack on Ukraine's central Cherkasy region, injuring six people and triggering a blackout in part of Cherkasy city, the local governor said on Thursday. "A difficult night for our Cherkasy region," Governor Ihor Taburets said on the Telegram messaging app. Sign up here. Taburets said the attack targeted critical infrastructure and that part of the region's main city was without power. He also reported damage to more than a dozen of private houses. The military said Russia had launched 82 drones on Ukraine overnight, and Ukrainian forces destroyed 63 of them. The governor of the southern Mykolaiv region said Russia attacked energy infrastructure there, leaving settlements in the Voznesensk and Mykolaiv districts without power, though it was later restored to most households. Russia has sharply increased the number and intensity of its attacks on Ukrainian infrastructure in recent months, targeting gas, energy and distribution facilities and plunging entire cities into darkness. An attack over the weekend left more than a million households across Ukraine without power. https://www.reuters.com/world/europe/russian-attack-ukraines-central-cherkasy-injures-six-causes-blackouts-governor-2025-12-18/