JAKARTA (TheInsiderStories) – The Ministry of Energy and Mineral Resources (MEMR) through the Directorate General of Minerals and Coal has set the Indonesia Coal Reference Price (CRP) for December 2017 at US$ 94.04 per ton, slightly lower than in the previous month, at $94.84 per ton.
Compared to the previous year (year-on-year), the monthly coal price was 8 per cent lower than the coal price in December of last year, at $101.69 per ton. The coal reference price is the price for the spot sale of coal for loading free-on-board at Indonesian ports (FOB Vessel).
Agung Pribadi, spokesman of MEMR, said that the determination of CRP is stipulated in Energy and Mineral Resources Ministerial Decree No. 4120 K/32/MEM/2017 on Dec. 8.
Furthermore, he said that in the Decree, the value of CRP obtained an average of four coal price indices commonly used in world coal trading, namely, Indonesia Coal Index, Newcastle Export Index, Globalcoal Newcastle Index and Platt’s 5900 in the previous month.
This determination is equal to the calorific value of 6.322 kcal coal per kilogram of Gross As Received, water content (total moisture) of 8 per cent, 0.8 per cent sulfur as received, and ash content of 15 per cent.
The decline in the second and third weeks of November, when the price dropped to touch $90 per ton, was due in part to the decline in Chinese demand, following import restrictions.
The MEMR now projects the country’s coal production to reach around 450 million tons this year, lower than the revised target of 477.91 million tons set earlier, partly due to weather disruption.
The projected coal production was little changed from last year’s realized coal production of 456 million tons.
Projected 2017 coal production was still higher than the production target of 413 million tons for this year set under the government’s five-year plan for the period of 2015-2019. In 2016, actual coal production reached 456 million tons, higher than the official target of 419 set in the five-year plan.
Director for Coal at the MEMR Sri Rahardjo recently said that the government has set the preliminary coal production target for 2018 at 446.6 million tons, lower than this year’s estimated realized coal production, but higher than the five-year plan, at 406 million tons.
Written by Elisa Valenta, Email: email@example.com