Trader welcomes the evaluation of HBA formula

By Tri Subhki R

Ginga Petroleum Pte Ltd, a Singapore trading company, welcomed the evaluation of coal benchmark price (HBA) formula by Ministry of Energy and Mineral Resources (MEMR).

Ginga's Coal Team Leader Zenny Tran suggested the formula should include a well-accepted index in international market, such as McCloskey Index. "HBA is not used as price benchmark in international market," she told Petromindo.com recently.

Deputy Director of Coal Production and Marketing Supervision at MEMR Gultom Gushka previously said the ministry to evaluate the HBA formula to increase the coal price.

The current HBA formula is calculated based on four indices, namely Indonesia Coal Index (ICI), Platts, NEX (Newcastle Export Index) and GC (Newcasle Global Coal Index), each with 25 percent contribution to HBA.

Editing by Johannes Simbolon