JAKARTA – The Indonesian government mandates that coal exporters use the Coal Reference Price (HBA) in all export transactions to maintain the stability of Indonesian coal prices in the global market.

Bahlil Lahadalia, the Minister of Energy and Mineral Resources (ESDM), revealed that this regulation is still being formulated and will be issued through a Ministerial Decree (Kepmen) from the Ministry of Energy and Mineral Resources.

“We are considering issuing a Ministerial Decree to ensure that the HBA price is used for transactions in the global market,” said Bahlil at a press conference on the ESDM Sector Performance Achievements earlier this week.

To enforce this regulation, Bahlil emphasized that the government will take a firm stance against exporters who refuse to comply. “If they don’t want to, then we simply won’t grant their export licenses,” Bahlil stated.

Currently, Indonesian coal prices are still based on several indices, including the Indonesian Coal Index (ICI), which serves as a weekly benchmark for Indonesian coal prices in both domestic and international markets.

According to data from the International Energy Agency (IEA), Indonesia is the world’s largest coal exporter, with coal exports reaching 353 million tons in 2023. (KR/ZH)