Home News Indonesia Set March’s Coal Benchmark Prices US$67.08 a Ton

Indonesia Set March’s Coal Benchmark Prices US$67.08 a Ton

The energy mineral and resources (EMR) ministry set the reference price of coal US$67.08 per metric ton for March - Photo: Special

JAKARTA (TheInsiderStories) – The energy mineral and resources (EMR) ministry set the reference price of coal US$67.08 per metric ton (MT) for March. The price higher 0.28 percent compared to February’ price at $66.89 a MT and in January was $65.93 per MT.

The analysts believes the increase in March due to high competition in the domestic market for steam power plants and the overseas needs. But they rated, the situation will return to normal in the third quarter of 2020.

Based on EMR ministry data, until end of February, the realization of coal exports from Indonesia recorded 29.82 MT or only 7.55 percent of this year’ plan with total amount 395 MT. The realization of coal production reached 94.34 MT or 17.15 percent of this year’s planned production which reached 550.00 MT.

While, according to investor relations of coal miner, PT Samindo Resources Tbk (IDX: MYOH), Ahmad Zaki Natsir, the reference price, which had risen since the beginning of this year, was due to forest fires in Australia. In addition, the coronavirus has resulted many producers not run their production and make the demand from China slower.

While, other mining company, PT Golden Energy Mines Tbk (IDX: GEMS) is targeting revenues of US$1.10 billion in 2020 by production 30 MT of coal. The president director, Bonifasius explained, about 30 percent of their production to meet the domestic demand and the rest are China, India and other Southeast Asian countries.

He added, 60 percent of the company’ coal buyers were final customers and long-time clients of the company. Therefore, he is optimistic that sales will run smoothly.

EMR ministry has urged the coal producer to prioritize the fulfillment of domestic primary energy needs to support the government’ renewable program. Until October of 2019,  the realization of domestic coal utilization was only 95 MT from the target 128 MT.

This year, the EMR minister, Arifin Tasrif, decided to continue the Domestic Market Obligation of at least 25 percent of the coal production in 2020. These provisions are contained in Ministerial Decree Number 261 of 2019 concerning Fulfillment of Domestic Coal Needs for 2020.

Written by Staff Editor, Email: theinsiderstories@gmail.com