Indonesian government declared coal benchmark price falls for fifth straight month in January 2019
The Ministry of Energy and Mineral Resources of the Republic of Indonesia has revised down again the benchmark price of Indonesian thermal coal in January 2019. The Coal Price Reference Falls for the fifth month in a row in January 2019 as demand for coal from China declines in the past few months compared to increase of Indonesian coal output.
According to the latest ministerial decree 01 K/30/MEM/2019 dated 2 January 2019, the government has reduced Indonesian Coal Price Reference (HBA) by 0.11 per cent month on month to US$ 92.41 per ton for 6322 GAR power plant coal for January 2019 delivery for exports as well domestic end-users except for Indonesian power producers. For domestic power plants HBA has fixed at US$ 70 per ton or US$ 22.41 lesser than the export price.
The declared Indonesian thermal coal price reference for January 2019 delivery is 3.28 per cent lower compared to January 2018 price.
Indonesia has capped the price of thermal coal for domestic power stations at $70 per ton (basis 6322 GAR Coal) if HBA is equal to or higher than US$ 70 per ton until December 2019 since 12 March 2018, in new rule was issued on 9 March 2018 (MEMR Ministerial decree 1395K/30/MEM/2018) and 1410 K/30/MEM/2018 dated 12 March 2018. However the HBA drops below $70 per ton, the domestic thermal coal price for power stations will revert to HBA. This special price for power plants is applicable for maximum100 million tons of coal per year.