Indonesia’s Ministry of Energy and Mineral Resources set its thermal coal reference price (HBA) for September at USD 65.79 per metric ton (MT), the lowest since October 2016.
This current reference price is lower by 9.5% on a month-to-month basis, as compared to USD 72.67/MT in the previous month of August 2019.
Further, it’s lower by 37.2% on a year-on-year basis, as compared to USD 104.81/MT in the month of September 2018.
The Indonesian thermal coal reference price has decreased every month since August 2018, when the HBA was recorded at USD 107.83/MT.
Notably, the new coal reference price came after Perusahaan Listrik Negara (PLN), the Indonesian government-owned power utility company, urged the ministry late last month to maintain the benchmark selling price of coal that is sold domestically under the Domestic Market Obligation (DMO) at USD 70/MT.
The HBA price for thermal coal, locally known as Harga Batubara Acuan, is the basis for determining the prices of 77 Indonesian coal products and calculating the royalty required to be paid by miners for each metric ton of coal sold.
It is based on 6,322 kcal/kg GAR coal with 8% total moisture content, 15% ash and 0.8% sulfur as received.
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