Indonesia's Coal Reference Price Increases by 7.21% at the Start of 2024

The Ministry of Energy and Mineral Resources (ESDM) has set the January 2024 Coal Reference Price (HBA) at US$125.85 per ton. This price is approximately 7.21% higher than the December 2023 price of US$117.38 per ton.

The January 2024 reference price marks the fifth increase since the beginning of 2023. The highest price was recorded in November 2023 at US$139.80 per ton, a 12.77% increase from October 2023's US$123.96 per ton. The remaining months saw predominantly decreasing prices.

All coal classes saw price increases this month. Specifically, HBA I was US$87.36 per ton in January 2024, up from US$85.92 per ton in December 2023.

HBA II was US$58.56 per ton in January 2024, up from US$57.70 in December 2023.

Finally, HBA III was US$37.09 per ton in January 2024, up from US$34.18 per ton.

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 standardized to a calorific value of 6,322 kcal/kg GAR, 8% total moisture, 0.8% total sulfur, and 15% ash.

The HBA is now calculated based on the average of the previous month's coal sales realization (70% proportion) and the realization of prices two months prior (30% proportion).

The HBA is also categorized into four grades based on coal quality:

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

This reference price was established through Indonesian Minister of Energy and Mineral Resources Decree Number 8.K/MB.01/MEM.B/2024 concerning the Reference Price for Metal Minerals and Coal for January 2024, on January 15, 2024.

(See also: Indonesian Coal Reference Price Down 16% at the End of 2023)