By Suyash Pande and Anita Nugraha 

January 6, 2022 - Indonesia's Ministry of Energy and Mineral Resources set its January thermal coal reference price -- also known as Harga Batubara Acuan, or HBA -- at $158.50/mt, down $1.50/mt from December as China boosted its domestic production, according to a ministry spokesperson Jan. 6.

"The Chinese government is trying to increase coal production in order to meet domestic needs which has an impact on increasing domestic coal stocks," said Agung Pribadi said.

The HBA price was $160/mt in December 2021 and was at $75.84/mt in January 2021.

The HBA is a monthly average price based 25% each on Platts Kalimantan 5,900 kcal/kg GAR assessments, Argus-Indonesia Coal Index 1 (6,500 kcal/kg GAR), Newcastle Export Index (6,322 kcal/kg GAR) and globalCOAL Newcastle (6,000 kcal/kg NAR).

In December, the daily Platts FOB Kalimantan 5,900 kcal/kg GAR coal assessment averaged $129.10/mt, down 15.6% from $153.14/mt in November.

The HBA price for thermal coal is the basis for determining the prices of 77 Indonesian coal products and calculating the amount of royalty producers have to pay for each metric ton of coal sold.

It is based on 6,322 kcal/kg GAR coal with 8% total moisture content, 15% ash as received and 0.8% sulfur as received.