Indonesia's Coal Reference Price for June-July 2023 Shows Slight Strengthening

The Ministry of Energy and Mineral Resources (ESDM) has set the Coal Reference Price (HBA) for June and July 2023.

For June 2023, the price reached US$191.36 per ton. This figure actually dropped from the May 2023 HBA, which reached US$205.16 per ton.

The HBA I for June 2023 was set at US$112.59 per ton. Meanwhile, HBA II was set at US$78.35 per ton.

Shifting to July 2023, the HBA strengthened slightly, to US$191.6 per ton.

For HBA I in July 2023, it reached US$109.28 per ton, down from the June 2023 price. A decrease also occurred in HBA II, which became US$75.2 per ton in July 2023.

Previously, the HBA was determined based on the average index of the Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platt's 5900, with quality equated to a calorific value of 6,322 kcal/kg GAR, total moisture 8%, total sulfur 0.8%, and ash 15%.

However, starting in March 2023, the HBA is calculated based on the average of the realized coal selling price one month prior (70% proportion), and the realized price two months prior (30% proportion).

The HBA is also differentiated into three categories based on coal quality, namely:

* HBA: quality equated to a calorific value of 6,322 kcal/kg GAR, total moisture 12.58%, total sulfur 0.71%, and ash 7.58%.
* HBA I: quality equated to a calorific value of 5,200 kcal/kg GAR, total moisture 23.12%, total sulfur 0.69%, and ash 6%.
* HBA II: quality equated to a calorific value of 4,200 kcal/kg GAR, total moisture 35.29%, total sulfur 0.2%, and ash 4.21%.

The June HBA determination is stipulated in ESDM Ministerial Decree Number 119.K/MB.01/MEM.B/2023 concerning the Reference Price for Metal Minerals and the Reference Price for Coal for June 2023, dated June 12, 2023.

Meanwhile, the July HBA was issued through ESDM Ministerial Decree Number 183.K/MB.01/MEM.B/2023 concerning the Reference Price for Metal Minerals and the Reference Price for Coal for July 2023, dated July 17, 2023.

(Also read: Coal Prices Plummeted in the First Half of 2023, Cheaper Than Before the War)