As of August 2024, the Indonesian Energy and Mineral Resources Ministry has set the country's coal reference price (HBA) at ****** U.S. dollars per metric ton, showing a decrease of over ** U.S. dollars from the same month in 2023. Indonesia is one of the largest producers and exporters of coal worldwide.

The Indonesian Coal Price Reference (HBA) is a monthly benchmark price used by coal producers and buyers in Indonesia. It is based on factors such as coal quality, market conditions, and global coal prices and serves as a reliable indicator of price trends. The HBA promotes transparency and fairness in the coal market and has been widely accepted within the industry since it was introduced in 2009.

The HBA (Harga Batubara Acuan) is the Indonesian Coal Price Index, which is a benchmark price used for determining the royalty amount that coal producers need to pay to the government. It is also used as a reference for coal contracts and pricing formulas in Indonesia. Learn about its calculation, role in royalty determination, contract negotiations, and importance in promoting fair and transparent pricing in the Indonesian coal industry.

In 2020, the average coal reference price (HBA) in Indonesia was at ***** U.S. dollars per metric ton, reaching its lowest point since the past decade as the coal industry in Indonesia has also been affected by the COVID-19 pandemic. The HBA is set by the Indonesian Energy and Mineral Resources Ministry.

The HBA Coal Index (Harga Batubara Acuan) is a benchmark price for thermal coal in Indonesia. It is used as a reference for determining prices of coal products in both domestic and international markets. The index is published monthly by the Indonesian Ministry of Energy and Mineral Resources (MEMR) and is based on a formula that takes into account various factors such as the global coal price trend, production costs, and demand-supply dynamics.

Indonesia Coal Market size was valued at USD 211.41 Billion in 2024 and is projected to reach USD 369.19 Billion by 2032, growing at a CAGR of 7.2% from 2026 to 2032.Key Market DriversStrong Export Demand from Asian: Export demand, particularly from China, India, and other Asian economies, has been a significant driver for Indonesia's coal. As the world's largest thermal coal exporter, Indonesia has benefited from the energy needs of rapidly developing nations in the region, especially during post-pandemic economic recovery periods. The average benchmark coal price (HBA) reached USD 215.01 per tonne in 2022, a significant increase from USD 149.07 in 2021 and USD 58.17 in 2020 (Ministry of Energy and Mineral Resources, 2023).Domestic Energy Security Policies: Indonesia's domestic energy policies prioritize coal as a strategic resource for national energy security. The government's policies to ensure domestic supply, including the Domestic Market Obligation (DMO), have created a stable local demand base while maintaining export revenues. The DMO requirement is maintained at 25% of coal production throughout 2021-2023 (Ministry of Energy and Mineral Resources regulation, 2021). Domestic coal consumption for power generation reached 113 million tons in 2022, a 4.5% increase from 2021 (PLN Statistical Report, 2023).

Learn about HBA Coal, a benchmark price system for coal produced in Indonesia. Discover how it is calculated, its role in the coal industry, and its benefits for producers, traders, investors, and the government.