Indonesia to Use its Benchmark Coal Price for Transactions from March 1

MINING - JAKARTA. Indonesia will start using its government-set benchmark coal price as the floor price for transactions starting from March 1, Tri Winarno, a senior official at the Energy and Mineral Resources Ministry, said on Wednesday.

Indonesia currently uses the government benchmark price, known as the HBA, to calculate royalty fees for coal miners.

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Tri did not elaborate further on details of the policy.

Energy minister Bahlil Lahadalia said earlier this month that the government would require coal companies to use the HBA as the benchmark for global transactions, as the government seeks to have more control over prices of the nation's coal.