JAKARTA (RambuEnergy.com) – Indonesia’s Energy and Mineral Resources Ministry has set its February coal reference price (HBA) to US$91.80/t, representing 0.66 lower than in the previous month of US$92.41/t.
The lower coal price was mainly due to lower import demand, in particular from Indonesia’s key coal buyers, China and India, the energy ministry’s spokesman Agung Pribadi said Wednesday.
The monthly price assessment, which reflects coal for loading free-on-board at Indonesian ports, was 8.83% lower than in the same month last year at $100.69/t.
Pribadi said the coal reference price was due to the policies of the Chinese and Indian government to limit coal import and utilizes domestic coal production instead.
“Their policy to utilize more domestic coal have resulted in a lower Indonesian coal reference price in the month,” Agung Pribadi said.
The Indonesian coal price has been trending down over the past six months, from a peak of $107.83/t in August to $104.81/t in September, $100.89/t in October, $97.90/t in November and $92.51/t in December.
Indonesia produced 528 Mt of coal in 2018, increased 14% from the previous year of 461 Mt, as the government allows some major coal producers to raise their production quota.
As for this year, the energy ministry has set a lower indicative production target of 480 Mt. (*)