JAKARTA. The Ministry of Energy and Mineral Resources (ESDM) has set the coal reference price in November 2021 to USD 215.01 per ton. It is 33% higher than the price in October 2021, of USD 161.63 per ton.

Agung Pribadi, the Head of Communication Bureau of ESDM Ministry, explained that this increase was driven by winter and coal crises in China. “The coal demands from China keeps getting higher following the beginning of the winter, while the bad weather disrupts the production and transportation in coal-manufacturing provinces,” he further explained in an official statement.

The coal reference price keeps rolling higher and higher throughout the year. Starting off with USD 75.48 per ton in January, the reference price had shifted to USD 84.47 per ton in March. Then, it finally arrived at USD 150.03 per ton in September 2021.

For the record, the coal reference price was determined based on the average of Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platt’s 5900 in the previous month. This month’s price would be used as the reference for the coal price during the selling handover point with a free-on-board (FoB) base on the transport vessel for the whole month. (KR/ZH)