JAKARTA - The Ministry of Energy and Mineral Resources has increased the benchmark coal price for December 2020 by 7.07% month on month (mom) to US$59.65 per tonne.
The increase is due to rising demand in international markets as several coal-importing countries are experiencing industrial recovery. "Japan, South Korea, and India have been importing coal from Indonesia for their domestic industries," said Agung Pribadi, Head of Communications at the Ministry of Energy and Mineral Resources.
In addition, the increase of the benchmark price is also supported by Indonesia's coal export agreement with China. As previously reported by IDNFinancials.com, Indonesia has signed an agreement to export 200 million tonnes of coal to China by 2021.
"Those two factors have strengthened a positive sentiment for the increase of coal prices," Mr Pribadi said.
The benchmark price is applicable for the sales and purchase of coal (spot) in December at the sales handover point for free on board on a transporting vessel. In November 2020, the benchmark coal price was set at US$55.71 per tonne. (KR/MS)