However, compared to one year ago, Indonesia's coal price is still up 64 percent. In the second half of 2016 coal prices grew rapidly on the back of low production rates, especially in China that decided to streamline its coal industry by curbing coal production, hence combating the local oversupply and making China's coal policies in line with the Paris Climate Agreement. Meanwhile, demand was rising ahead of the winter time. In the new year, however, demand has fallen, while it is estimated that coal mining companies have been eager to boost output in recent months to enjoy the higher coal price.

Read more: Overview of Indonesia's Coal Mining Industry

The HBA is based for 25 percent on the Platts Kalimantan 5,900 kcal/kg GAR assessment; 25 percent on the Argus-Indonesia Coal Index 1 (6,500 kcal/kg GAR); 25 percent on the Newcastle Export Index (6,322 kcal/kg GAR), and 25 percent on the globalCOAL Newcastle (6,000 kcal/kg NAR) index.

Indonesian Government's Benchmark Thermal Coal Price (HBA):

Month  2012  2013  2014  2015
 2016  2017
January 109.29  87.55  81.90  63.84  53.20  86.23
February 111.58  88.35  80.44  62.92  50.92  83.32
March 112.87  90.09  77.01  67.76  51.62
April 105.61  88.56  74.81  64.48  52.32
May 102.12  85.33  73.60  61.08  51.20
June  96.65  84.87  73.64  59.59  51.87
July  87.56  81.69  72.45  59.16  53.00
August  84.65  76.70  70.29  59.14  58.37
September  86.21  76.89  69.69  58.21  63.93
October  86.04  76.61  67.26  57.39  69.07
November  81.44  78.13  65.70  54.43  84.89
December  81.75  80.31  69.23  53.51 101.69

in USD/ton
Source: Ministry of Energy and Mineral Resources

Indonesian Production, Export, Consumption & Price of Coal:

  2007 2008 2009 2010 2011 2012 2013 2014 2015
Production
(in million tons)
 217  240  254  275  353  412  474  458  461
Export
(in million tons)
 163  191  198  210  287  345  402  382  366
Domestic
(in million tons)
  61   49   56   65   66   67   72   76   87
Price (HBA)
(in USD/ton)
  n.a   n.a  70.7  91.7 118.4  95.5  82.9  72.6  60.1

Sources: Indonesian Coal Mining Association (APBI) & Ministry of Energy and Mineral Resources

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