Market Interest Shrinks, June HBA Corrected to USD52.98 per Tonne

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 198.Pers/04/SJI/2020

Date: 5 June 2020

Market Interest Shrinks, June HBA Corrected to USD52.98 per Tonne

Coal Benchmark Price (HBA) is again corrected in June to USD52.98 per tonne or down by USD8.13 per tonne from May benchmark of USD61.11 per tonne. The slight movement of the economy has made coal demand market sluggish, particularly in India and China.

"Coal stocks in India and China are quite high. They still use their domestic production," said Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of EMR Agung Pribadi in Jakarta, Friday (5/6).

Reduced coal supply from Indonesia, continued Agung, cannot be separated from the strong impact of Covid-19 which limits the economic movement of all countries. "Amid the pandemic, there's a tendency to shift to alternative energy sources in the country. That is one of the main triggers besides the stronger relations between China and Australia," Agung stated.

Agung admitted the HBA has been showing a downward trend since Covid-19 was announced as a pandemic by World Health Organization (WHO) in mid-March. Picking up by 0.28% to USD67.08 per tonne in March compared to February (USD66.89 per tonne), the HBA fell to USD65.77 per tonne in April.

The HBA is an average of Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platts 5900 from the previous month, with quality equaled to 6322 kcal per kilogram GAR.

The benchmark price will be used for direct (spot) sales of coal commodity in one month on a Free on Board (FOB) the vessel basis. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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