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Benchmark coal price hits lowest level in four years

03 July 2020 14:01

JAKARTA. The Ministry of Energy and Mineral Resources has lowered the benchmark coal price by 1.55% to US$52.16 per tonne for July 2020 from US$52.98 per tonne in the previous month.

According to the ministry's Head of Communications Agung Pribadi, the policy is affected by the absorption of Indonesian coal in global markets and oversupply of Indian and Chinese coal. "These two countries are prioritising their domestic supplies," he said in an official statement on Friday (3/7).

In addition, Mr Pribadi also cited a shifting trend in energy consumption during the coronavirus (COVID-19) pandemic, with several countries preferring locally-sourced alternative energy sources due to trade restrictions imposed to curb the spread of the virus.

Indonesia's benchmark coal price surged most recently in March 2020 by 0.28% to US$67.08 per tonne. It has since slipped, equalling the lowest level of US$50.92 per tonne in February 2016. (KR/MS)

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