MEMR plans to revise coal price reference regulation
Friday, August 30 2013 - 01:38 AM WIB
The Ministry of Energy and Mineral Resources (MEMR) plans to revise the Directorate General of Coal and Minerals Regulation No 515/2011 on the Indonesia Coal Price Reference, or better known as HBA, amid difficulties suffered by many producers of low rank coal in selling their output using the price reference.
Gultom Guskha, Head of Marketing and Production Supervision at the directorate, said Thursday that the planned revision would be focused on revising the weighting of each component of the price reference.
The government of Indonesia has been issuing the monthly HBA since 2010. The reference price is calculated based on the average of previous month?s Indonesia Coal Price Index (ICI-1), Platts-1, Newcastle Export Index (NEX), and the Newcastle Global Coal Index (GC).
?Going forward, the percentage of each indexes will be adjusted with the current number of users of the index in the market,? Gultom said, while adding that under the planned revision, the government will also introduce different types of HBA such as HBA1, HBA2, and HBA3, depending on the calorific value (GAR) of the coal.
He said that the ministry is currently awaiting for inputs from the industry players to make the revision.
Editing by Reiner Simanjuntak