Coal Exports Will Be Required To Use HBA Starting March 1, 2025

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) ensures that it will require entrepreneurs who export coal to use the Reference Coal Price (HBA) as a price benchmark in the global market.

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia said the regulation would take the form of a Ministerial Decree (Kepmen) and take effect on March 1, 2025.

"Kepmen. (Being) March 1," Bahlil told the media crew quoted on Thursday, February 27.

Bahlil said that currently the Director General of Mineral and Coal (Minerba) Tri Winarno is conducting socialization to coal exporters.

He added that so far entrepreneurs have exported coal at a reference price set by other countries. Bahlil assessed that the price set by other countries was detrimental to Indonesia.

"So so far our coal prices, our reference coal prices are controlled or determined by other countries. Even until then our prices are much cheaper than other countries," said Bahlil.

For that, he said, Indonesia needs to have independence by determining its own reference price.

"Don't let our coal prices be determined by others, the price is low. I don't want that. So now we are making HBA so that our prices also have a good price in the global market," said Bahlil.

For information, HBA in January for coal commodities 6.322 kcal per kg GAR, total motion 12.26 percent, total Sulphur 0.66 percent, and Ash 7.94 percent experienced a slight increase from the previous 124.01 US dollars per ton to 124.24 US dollars per ton.

Furthermore, HBA is set for coal commodity I, in equal value of 5.300 kcal/kg GAR, Total Moisture 21.32 percent, Total Sulphur 0.75 percent, and Ash 6.04 percent set at 82.26 US dollars per ton.

Meanwhile, the Reference Price for Coal commodity II is equal to a value of 4.100 kcal/kg GAR, a Total Moisture of 35.73 percent. Total Sulphur 0.23 percent and Ash 3.90 percent decreased to 50.52 US dollars per tonne from 52.75.

As for the reference price for coal III, in the equality of the calorie value of 3,400 kcal/kg GAR, Total Moisture 44.30 percent, Total Sulphur 0.24 percent and Ash 3.88 percent at 34.38 US dollars per ton.