JFX sets ambitious coal transaction target

Despite the lingering downturn in the global coal market, the Jakarta Futures Exchange (JFX) has set an ambitious target to have at least 5 million tons of coal transaction volume this year, Kontan reported on Wednesday.

?We targeted the number of sellers and buyers in 2015 to reach 20 companies,? said JFX Director Bihar Sakti Wibowo.

The JFX launched in July of last year the country?s first coal physical contract. So far, only state-controlled coal miner PT Bukit Asam Tbk (PTBA) which has sold a small part of its coal output via the JFX on-line trading system.

Last year, PTBA offered a total of 75,000 tons of coal to buyers via the on-line trading platform comprising of 60,000-ton coal with CV of 7,000 kcal/kg at a price of US$74 per ton, and 15,000-ton coal with CV 6,300 kca/kg at a price of $62.5 per ton.

The current drop in coal price has discouraged miners from offering coal via the exchange. Bihar, however, is optimistic that that coal transaction volume this year will be much higher as the online trading system at the exchange benefits market players. (*)