Yustinus Paat, Jakarta – Energy and Mineral Resources Minister Bahlil Lahadalia confirmed on Thursday that he has signed a regulation requiring all export coal sales to adopt the government's coal price benchmark (HBA), effective March 1.
The transition from the Indonesia Coal Index (ICI) to the HBA benchmark aims to strengthen Indonesia's bargaining position in global coal pricing mechanisms and boost state revenues from royalties, Bahlil said.
"HBA has been introduced for some time, and starting March 1, it will become mandatory," Bahlil announced. "For too long, the price of our coal has been determined by foreign markets, often undervalued compared to coal from other countries."
As one of the world's largest coal producers, Indonesia must have greater influence over global coal prices, the minister added.
HBA will also serve as the reference price for determining royalty payments from coal producers, ensuring maximum benefits for the government, coal companies, and exporters.
The HBA benchmark was formulated after extensive studies and consultations with various stakeholders. It is designed to ensure that Indonesian coal is priced fairly and competitively in global markets, Bahlil explained.
Another key feature of HBA is its price stabilization mechanism, with updates released twice a month to reflect market conditions and prevent sharp price fluctuations.
"We must not allow outsiders to dictate the price of our coal. With HBA in place, we can secure more favorable prices and protect our national interests," Bahlil said.