Indonesia introduces a reference price to regulate its coal market from March 2025

Indonesia sets a floor price for coal to strengthen its control over domestic prices and influence international markets. This new strategy will take effect on March 1, 2025.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

Indonesia, the world’s third-largest coal producer, has announced a significant adjustment to its thermal coal pricing policy. Starting from March 1, 2025, the government will implement a minimum reference price for all coal transactions, called Harga Batubara Acuan (HBA). This measure aims to strengthen the control of Indonesian authorities over coal prices, both domestically and for export. The HBA will serve as a floor price, directly influencing market players in both the domestic and international markets.

The new policy also introduces bi-monthly coal price revisions, starting from March 1. As a result, the HBA will be adjusted twice a month, on the 1st and 15th, instead of a monthly revision as it was previously. This change is intended to better reflect global market dynamics, whose fluctuations can impact coal prices and, consequently, the country’s export revenues.

Caps for the domestic market

Alongside this new export price regulation, the government maintains specific caps for the domestic market. The domestic market obligation (DMO) sets maximum prices of 70 USD/ton for domestic electricity generation and 90 USD/ton for certain industries. These thresholds aim to ensure a stable and affordable coal supply for these key sectors, while also allowing the government to exert pressure on export prices.

Impact on exporters and overall strategy

Indonesian exporters will now be required to adhere to these new floor prices or face sanctions. This obligation aims to strengthen Indonesia’s influence over the global coal market. The country seeks to balance its growing internal energy needs, electricity production, and its position on the global energy stage, while also meeting international environmental commitments.

In 2024, Indonesia is expected to produce 831.05 million tonnes of coal, of which approximately 434.11 million tonnes will be exported. Coal remains a major component of Indonesia’s energy mix, accounting for 61.8% of its energy supply in 2023, raising concerns over the country’s climate commitments.

Coal will temporarily become the main source of electricity in the Midwest markets MISO and SPP during winter, according to the latest federal forecasts.
The Trump administration plans to open millions of federal hectares to coal and ease environmental rules governing this strategic industry.
The integration of private operators into South Africa’s rail network marks a turning point for coal exporters, with a target of 55 million tonnes exported in 2025 from the Richards Bay terminal.
Facing Western restrictions, Russia plans to increase coal deliveries to China, India and Turkey, according to a recent presentation on the sector’s outlook.
The visit of the Pakistani president to Shanghai Electric marks a new strategic phase in China-Pakistan energy cooperation, centred on the Thar mining and power project and local skills development.
Port congestion in Australia has boosted Russian and Indonesian coal exports to South Korea, with both now dominating the market due to lower prices and reliable delivery schedules.
Polish state-owned producer JSW confirms its 13.4 million tonnes production target for 2025 thanks to new equipment coming online, despite recent disruptions at multiple sites.
Russia and Indonesia overtook Australia as South Korea's top thermal coal suppliers in August, driven by lower prices and more reliable logistics amid persistent Australian shipment delays.
Uniper has demolished cooling tower F at its Scholven power plant, marking a new stage in the dismantling of the Gelsenkirchen coal site, where the energy company plans to build a hydrogen-ready gas-fired plant.
Underreported methane emissions from Australian mines could increase steelmakers’ carbon footprint by up to 15%, according to new analysis highlighting major gaps in global supply chains.
The new Russian railway line linking the Elga mine to the Sea of Okhotsk port will reach full capacity in 2026, after an operational testing phase scheduled for 2025.
The Romanian government is asking the European Union for a five-year delay on the closure of 2.6 gigawatts of coal capacity, citing delays in bringing gas and solar alternatives online.
President Gustavo Petro bans all coal exports to Israel, a decision with minor energy effects but strong diplomatic weight, illustrating his anti-Americanism and attempts to reshape Colombia’s domestic politics.
India’s coking coal imports are rising and increasingly split between the United States and Russia, while Australian producers redirect volumes to China; 2025 results confirm a shift in trade flows.
China approved 25 GW in H1 2025 and commissioned 21 GW; the annual total could exceed 80 GW. Proposals reached 75 GW and coal’s share fell to 51% in June, amid declining imports.
Valor Mining Credit Partners completes its first major financing with a secured loan to strengthen the operational capacity of a U.S. mining site.
Amid tensions on the Midwest power grid, Washington orders the continued operation of the J.H. Campbell plant to secure electricity supply over the coming months.
Peabody Energy abandons the acquisition of Anglo American’s Australian coal assets, triggering an arbitration process following the failure of a post-incident agreement at the Moranbah North mine.
Core Natural Resources announces USD220.2mn in operating cash flow for the second quarter of 2025, while revising its capital return strategy and increasing post-merger synergies.
A report by Wood Mackenzie reveals that geopolitical pressures and rising global electricity demand could keep coal-fired generation elevated well beyond current forecasts.

Accédez gratuitement à une sélection d’analyses de votre choix et prenez de meilleures décisions, plus vite.