Indonesia's Benchmark Coal Price Extends Drop in February 2017
The benchmark thermal coal price of Indonesia (in Indonesian: Harga Batubara Acuan, or HBA), the a monthly price that is set by Indonesia's Energy and Mineral Resources Ministry, and which is based on a selection of domestic and international coal indices - continued to slide in the new year. The HBA fell 3.4 percent to USD $83.32 per metric ton in February 2017. Since the recent peak of USD $101.67 per metric ton in December 2016, the HBA price has now plunged 18 percent over the past two months.
However, compared to one year ago, Indonesia's coal price is still up 64 percent. In the second half of 2016 coal prices grew rapidly on the back of low production rates, especially in China that decided to streamline its coal industry by curbing coal production, hence combating the local oversupply and making China's coal policies in line with the Paris Climate Agreement. Meanwhile, demand was rising ahead of the winter time. In the new year, however, demand has fallen, while it is estimated that coal mining companies have been eager to boost output in recent months to enjoy the higher coal price.
Read more: Overview of Indonesia's Coal Mining Industry
The HBA is based for 25 percent on the Platts Kalimantan 5,900 kcal/kg GAR assessment; 25 percent on the Argus-Indonesia Coal Index 1 (6,500 kcal/kg GAR); 25 percent on the Newcastle Export Index (6,322 kcal/kg GAR), and 25 percent on the globalCOAL Newcastle (6,000 kcal/kg NAR) index.
Indonesian Government's Benchmark Thermal Coal Price (HBA):
| Month | 2012 | 2013 | 2014 | 2015 |
2016 | 2017 |
| January | 109.29 | 87.55 | 81.90 | 63.84 | 53.20 | 86.23 |
| February | 111.58 | 88.35 | 80.44 | 62.92 | 50.92 | 83.32 |
| March | 112.87 | 90.09 | 77.01 | 67.76 | 51.62 | |
| April | 105.61 | 88.56 | 74.81 | 64.48 | 52.32 | |
| May | 102.12 | 85.33 | 73.60 | 61.08 | 51.20 | |
| June | 96.65 | 84.87 | 73.64 | 59.59 | 51.87 | |
| July | 87.56 | 81.69 | 72.45 | 59.16 | 53.00 | |
| August | 84.65 | 76.70 | 70.29 | 59.14 | 58.37 | |
| September | 86.21 | 76.89 | 69.69 | 58.21 | 63.93 | |
| October | 86.04 | 76.61 | 67.26 | 57.39 | 69.07 | |
| November | 81.44 | 78.13 | 65.70 | 54.43 | 84.89 | |
| December | 81.75 | 80.31 | 69.23 | 53.51 | 101.69 |
in USD/ton
Source: Ministry of Energy and Mineral Resources
Indonesian Production, Export, Consumption & Price of Coal:
| 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |
| Production (in million tons) |
217 | 240 | 254 | 275 | 353 | 412 | 474 | 458 | 461 |
| Export (in million tons) |
163 | 191 | 198 | 210 | 287 | 345 | 402 | 382 | 366 |
| Domestic (in million tons) |
61 | 49 | 56 | 65 | 66 | 67 | 72 | 76 | 87 |
| Price (HBA) (in USD/ton) |
n.a | n.a | 70.7 | 91.7 | 118.4 | 95.5 | 82.9 | 72.6 | 60.1 |
Sources: Indonesian Coal Mining Association (APBI) & Ministry of Energy and Mineral Resources