Indonesia: Domestic coal index in mid-Oct’25 shows upward momentum across grades

• Mid-CV coal prices witness significant uptick 
• Strong overseas demand lifts Indonesian prices

The Indonesian Ministry of Energy and Mineral Resources (ESDM) has announced the updated Harga Batubara Acuan (HBA), the benchmark price index for thermal coal, for the second half of October 2025.

The latest data highlights a broad upward trend across all coal grades, reflecting changing international demand patterns and regional market dynamics.

High-CV coal sees moderate increase

The benchmark for high-calorific value (6,322 kcal/kg GAR) coal rose 2.62% to $109.74/t, compared to the first half of October. This gain is attributed to stronger demand from export markets and ongoing supply adjustments in major coal-producing regions. The moderate increase signals stable market conditions while maintaining Indonesia’s competitiveness in the global coal trade.

Mid-CV coal experiences significant hike

Mid-calorific value (5,300 kcal/kg GAR) coal experienced a more pronounced rise, climbing 4.5% to $67.76/t. This jump is influenced by renewed demand from steelmakers and industrial consumers across Asia, combined with international pricing pressures. The fuel’s balanced energy efficiency and competitive cost have made mid-CV coal an increasingly attractive alternative for buyers navigating volatile energy markets.

Low-CV Coal continues upward trend

Low-calorific value coal also posted gains in mid-October. The 4,100 kcal/kg GAR grade increased 1.37% to $43.71/t, while the 3,400 kcal/kg GAR grade rose 2.94% to $33.92/t.

Steady domestic demand, particularly from utilities seeking affordable fuel options, underpinned this increase. Its cost-effectiveness makes low-CV coal a stabilizing factor for both producers and power generators.

Outlook

Thermal coal prices are likely to remain resilient, driven by sustained regional demand, export market stability. While external factors such as global energy shifts and policy changes may influence volatility, price hikes are supported by international buyers’ preference for Indonesian coal.