Below is a list with tagged columns and company profiles.

Latest Reports Indonesian Coal Mining Association

  • Indonesian Coal Association: Coal Price to Remain around $50/ton in 2016

    The Indonesian Coal Mining Association (APBI) expects the coal price to remain stable around USD $50 per ton in the remainder of 2016. Indonesia's benchmark thermal coal price (harga batubara acuan, abbreviated HBA), which is set (on a monthly basis) by the Energy and Mineral Resources Ministry, rose 1.4 percent (m/m) to USD $52.32 per ton in April 2016. Since February the HBA has been climbing in three consecutive months. The last time Indonesia's benchmark coal price recorded a three-month gaining streak was in the October-December 2013 period.

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  • Coal Mining Update: Indonesia's Reference Coal Price Hits New Low

    Indonesia's benchmark thermal coal reference price (Harga Batubara Acuan, or HBA), set by the Indonesian Ministry of Energy and Mineral Resources, fell 1.69 percent (m/m) to USD $53.51 per metric ton (FOB) in December 2015, touching a new all-time record low since the this reference price was started in January 2009. Supriatna Suhala, Executive Director of the Indonesian Coal Mining Association (APBI), said the low coal price is caused by the global supply glut in combination with sluggish global economic growth.

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  • Coal Industry Update Indonesia: Export, Production & Domestic Demand

    Indonesian coal exports are expected to fall below 300 million tons in 2016 as domestic miners are cutting coal production volumes due to low coal prices. Indonesia’s October benchmark thermal coal reference price (set by the government) fell 1.4 percent (m/m) to USD $57.39 per metric ton (FOB) and now stands at an all-time record low since the start of this reference price in January 2009. Meanwhile, global benchmark coal prices are nearly touching nine-year lows.

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  • Indonesia Lowers 2015 Coal Production Target on Weak Global Context

    The government of Indonesia lowered its coal production target for 2015 from 425 million tons to 400 million tons as most Indonesian coal miners have cut production targets amid low global demand and weak prices. Domestic coal demand has also reduced primarily due to lower demand from state-owned power company Perusahaan Listrik Negara (PLN). In the first half of 2015, Indonesia (the world’s top thermal coal exporter) produced 204 million tons according to the Ministry of Energy and Mineral Resources.

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  • Government of Indonesia Postpones the Coal Royalty Hike

    The government of Indonesia decided to postpone its plan to raise royalties for the country’s coal miners. Bambang Gatot, senior official at the Ministry of Energy and Mineral Resources, said the government will not raise coal royalties yet given the sector’s current troubled climate (referring to low global coal prices). Indonesian coal miners will be happy to hear this news as they, especially the smaller-sized coal miners, are having difficulty to survive in the post-2000s commodities boom era.

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  • Coal Mining Update Indonesia: Coal Production to Fall in 2015

    Pandu Sjahrir, Chairman of the Indonesian Coal Mining Association (APBI), said that Indonesia’s coal production could decline by 24 percent (y/y) in 2015 as the country’s coal miners have been cutting production volumes amid the world’s low coal prices. Reportedly, the free cash flow of various Indonesian coal miners have turned negative, meaning that generated cash from coal production cannot cover companies’ operational costs. In fact, the country’s coal miners are now eager to diversify to other businesses in order to stay alive.

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  • Coal Production Indonesia Surprisingly Low in First Quarter 2015

    Coal production in Indonesia fell 21 percent (y/y) to 97 million tons in the first quarter of 2015 as the country’s coal miners cut production volumes amid low coal prices. Some smaller Indonesian miners may even have stopped production altogether as production costs exceed coal prices. According to data from Indonesia’s Energy and Mineral Resources Ministry, 79 million tons of coal were exported in the first quarter, while the remaining 18 million tons were absorbed by the domestic market.

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  • Coal Industry Indonesia: Confusion about Letter of Credit & Royalties

    The coal mining industry continued its downward trend in 2014 amid weak global coal demand and an oversupply on the market. The benchmark Newcastle port thermal coal price fell 29 percent (y/y) over 2014 and declined a further 8 percent in the first quarter of 2015. As a result, Indonesian coal miners reported mostly weak 2014 corporate earnings. However, Indonesian miners are concerned that two new regulations will cause more problems. The Indonesian government plans to raise coal royalties and introduce mandatory letters of credit.

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  • Coal Mining News: Indonesia Plans to Raise Coal Royalties in March

    Bad news for Indonesian coal miners as the government of Indonesia plans to raise coal royalties in March 2015 in a bid to increase revenue from the natural resources sector. Apart from raising royalties, the government will also implement measures to enhance monitoring in the coal mining sector (as illegal coal shipments and tax avoidance are a major problem). The plan to nearly double coal royalties are particularly expected to impact negatively on smaller miners and new firms that focus on the production of low-quality coal.

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  • News from Indonesia’s Coal Mining Industry: Production & Export

    Bob Kamandanu, Chairman of the Indonesian Coal Mining Association (APBI), advises the government of Indonesia to cut the country’s coal production by about 50 million tons and cap coal exports at 300 million tons in 2015 in an effort to boost global coal prices which are currently touching an eight-year low amid the sluggish global economy (particularly weakening coal demand from China) in combination with a coal oversupply. Indonesia is the world’s leading exporter of thermal coal which is primarily used in electricity generation.

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Latest Columns Indonesian Coal Mining Association

  • Indonesia’s Reference Coal Price Hits All-Time Low in May 2015

    On Monday (11/05), it was announced that the reference coal price of Indonesia declined 5.2 percent (month-on-month) to an all-time low of USD $61.08 per metric ton in May. This benchmark price, which is set by the government each month based on the average of four coal indexes (Indonesia Coal Index, Platts Index, New Castle Export Index and New Castle Global Coal Index), continued to plummet due to the coal oversupply in combination with weak global coal demand (particularly falling demand from China).

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  • Plan to Increase Revenues from Indonesia's Coal Sector may Backfire

    Concerns have arisen over the government's plan to increase royalties and export duties for coal. The Indonesian Coal Mining Association (APBI) expects that this policy will lead to the closure of various coal miners while increasing acts of illegal mining. According to Bob Kamandanu, chairman of the APBI, 60 million tons of coal per year is not listed by any authority and thus can be labeled 'illegal'. Illegal coal mining also implies that the Indonesian government misses out on about IDR 5.6 trillion (USD $495.6 million) per year.

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