On February 26, 2025, Indonesia’s Ministry of Energy and Mineral Resources (ESDM) announced a new regulation to adjust the management policy on coal export prices, effective March 1, 2025. The new rule aims to strengthen state control over all international coal trade transactions conducted by Indonesian exporters.
Implementation of a Government Benchmark Price for Coal Exports
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Under the new regulation, Indonesia will apply a minimum benchmark price (HBA – Harga Batubara Acuan) set by the government for all international coal sales by Indonesian exporters.
Exporting companies must base their contract prices on this minimum benchmark price, which will be announced twice per month — on the 1st and 15th.
Failure to comply may result in administrative fines or revocation of export licenses.
Currently, Indonesia uses the HBA (Harga Batubara Acuan) only as a reference for calculating resource taxes on export contracts. The new regulation expands its use to cover coal export pricing itself.
Provisions for Long-Term Contracts
For long-term coal export contracts already signed, exporters are allowed to maintain existing agreed prices. However, the Indonesian government encourages voluntary adjustment in accordance with the new benchmark pricing mechanism where possible.
Official Coal Benchmark Prices for February 2025
According to the HBA released by the Indonesian government:
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Low-calorific coal: USD 34.38 per metric ton
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High-calorific coal: USD 124.24 per metric ton
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Domestic supply obligation (DMO) prices for coal used in power generation: capped at USD 70 per metric ton
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DMO prices for industrial users: capped at USD 90 per metric ton
Strengthening Indonesia’s Role in the Global Coal Market
Through this new coal export price management policy, Indonesia aims to enhance its influence and regulatory rolein the international coal market — moving from a price-taker to a price-setting position.
In 2024, Indonesia produced approximately 831.05 million tons of coal, with 434.11 million tons exported. The country remains one of the major coal suppliers to Vietnam, with Vietnam’s coal imports from Indonesia reaching USD 2.49 billion in 2024.
This policy underscores Indonesia’s determination to assert greater control over export prices, stabilize revenues, and shape international coal pricing trends in line with its growing production and export capacity.