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Indonesian coal miners' earnings soar on record prices

Refinancing risks likely to rise due to 'shrinking pool' of bank loans

A coal barge is towed on a river in South Sumatra, Indonesia. (Antara Foto/Nova Wahyudi via Reuters)

JAKARTA -- Major coal miners in Indonesia swung back to profit or reported multifold increases in earnings in the first nine months of the year thanks to record prices for the commodity. But they face rising refinancing risks in the coming years as domestic banks join their global peers becoming cautious about lending to the fossil fuel industry.

Another potential long-term obstacle for miners is President Joko "Jokowi" Widodo's ambition to make Indonesia a climate leader as the country takes over the Group of 20 presidency from Italy.

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