By Tri Subhki R
IDX-listed coal producer PT Indo Tambangraya Megah Tbk (IDX: ITMG) is renegotiating coal sales contracts with buyers in response to a new Indonesian government policy mandating the use of the HBA (Harga Batubara Acuan) coal reference price for export transactions, effective March 1, 2025.
"Renegotiation or adjustments to contracts are made when necessary, taking into account contractual clauses and discussions with buyers or partners," said Yulius Kurniawan Gozali, Director of ITMG, to Petromindo.com on Monday.
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In 2024, ITMG sold a total of 24 million tons of coal, with the majority exported to markets including China, Japan, India, the Philippines, Thailand, Hong Kong, and Bangladesh. Approximately 23% of its coal sales were allocated to the domestic market.
For 2025, the company has set a sales target of between 26.3 million and 27.4 million tons. Of that, 14% is under fixed-price contracts, 53% under indexed-price contracts, and the remaining 32% is yet to be sold.
"Customer responses to the HBA pricing mandate vary, depending on the terms and characteristics of each contract," Yulius noted. He added that the company aims to optimize the value of each contract, including applying the HBA pricing mechanism to future unsold volumes.
Editing by Reiner Simanjuntak
