In late 2024, the Indonesian government will raise the benchmark coal price by 7.06%.

The Indonesian Ministry of Energy and Mineral Resources (ESDM) has set the Indonesian Coal Reference Price (HBA) for December 2024 at US$122.51 per ton.

This price represents a 7.06% increase from November 2024, which stood at US$114.43 per ton.

The December 2024 reference price is also 4.37% higher year-on-year (yoy) compared to December 2023, which was US$117.38 per ton.

While the main HBA was increased, the lower-grade prices were decreased.

HBA I was set at US$81.59 per ton in December 2024, up from US$83.46 per ton in November 2024.

HBA II was set at US$51.78 per ton in December 2024, down from US$51.91 per ton in November 2024.

Finally, HBA III was priced at US$35.28 per ton in December 2024, a slight increase from US$35.57 per ton in November 2024.

This reference price was established through Indonesian Minister of Energy and Mineral Resources Decree (Kepmen ESDM) Number 339.K/MB.01/MEM.S/2024 concerning the Reference Price for Metal Minerals and Coal for November 2024, on December 20, 2024.

Previously, the HBA was determined based on the average 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%.

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

* HBA: equivalent calorific value of 6,322 kcal/kg GAR, total moisture 12.26%, total sulfur 0.66%, and ash 7.94%.
* HBA I: equivalent calorific value of 5,300 kcal/kg GAR, total moisture 21.32%, total sulfur 0.75%, and ash 6.04%.
* HBA II: equivalent calorific value of 4,100 kcal/kg GAR, total moisture 35.73%, total sulfur 0.23%, and ash 3.90%.
* HBA III: equivalent calorific value of 3,400 kcal/kg GAR, total moisture 44.30%, total sulfur 0.24%, and ash 3.88%.

(See also: Indonesian Coal Reference Price 12.76% Cheaper in November 2024)