October HBA Touches USD161.63 per tonne

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 352.Pers/04/SJI/2021

Date: 5 October 2021

October HBA Touches USD161.63 per tonne

The Indonesia Coal Benchmark Price (HBA) for October 2021 rises again, touching USD161.63 per tonne.

"The rise in the October 2021 HBA has been brought about by an increasing demand in China where higher demands by power plants have exceeded the domestic capacity to supply coal; at the same time, demands from South Korea and European countries have also increased due to soaring natural gas prices," said Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of Energy and Mineral Resources (EMR, Agung Pribadi, in Jakarta on Tuesday (5/10).

Agung went on to say these factors had also triggered the increase in the global coal prices in October. The HBA set a new record in the last decade when it hit USD150.03 per tonne in September 2021. "(HBA) Rising again, rising by USD11.60 per tonne compared to last month," Agung added.

Plateauing between February and April 2021, the HBA had increased successively in the period of May-September 2021. It has consistently on the increase that, in October 2021, the HBA set a new high record.

For the record, the HBA is an average of Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platt's 5900 of the previous month, with quality made equivalent to 6322 kcal per kg GAR, Total Moisture 8%, Total Sulphur 0.8%, and Ash 15%.

There are two derivative factors which affect the HBA movement, namely supply and demand. The supply derivatives include season, mine technique, policies of the supplying countries, and supply chain techniques such as train, barge, and loading terminal.

Meanwhile, the demand derivatives consist of declining electricity demands due to industry condition, import policies, and competition with other energy commodity such as LNG, nuclear, and hydro.

The October HBA is used to determine coal prices on a basis of Free on Board the vessel (FOB vessel). (IY)

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

Agung Pribadi (08112213555)

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