Coal miners want sales contracts based on BBJ prices

By Hiski Darmayana

The association of Indonesian coal miners (APBI) has proposed to use future prices at the Jakarta Futures Exchange (BBJ) as the basis in determining coal prices for long-term sales contracts.

"At present, the price of Indonesian coal is determined by future price index in other countries. By using the price at the BBJ, we can establish our own market price, including for sales contracts in the next six months," APBI chairman Bob Kamandanu said in Jakarta on Monday.

The use of BBJ prices will also help the country to cope with the weakness of the coal price index (HPB) determined by the government, which according to Kamandanu, can not be used for long-term contract. "On the contrary, prices at BBJ can be used both for short-term and long-term contracts," he said.

Editing by Audy Zandri