Indonesia's Ministry of Energy and Mineral Resources (ESDM) on September 1 lowered most of its benchmark coal reference prices or the HBAs (Harga Batubara Acuan) for the first half of the month, while the high-CV grade increased notably to a new high in four consecutive sessions.

The HBA for 6,322 Kcal/kg GAR coal was set at $105.33/t, up $4.64/t or 4.6% from August 15.

The HBA I, gauging 5,300 Kcal/kg GAR, was priced at $66.5/t for the same period, falling $0.7/t or 1% from the second half of August. The HBA II, measuring 4,100 Kcal/kg GAR, was set at $42.3/t, down $1.4/t or 3.2% from the previous half, while the HBA III, basis 3,400 Kcal/kg GAR, was set at $32.32/t, a drop of $1.16/t or 3.5%.

The new regulation introduced by ESDM mandates that coal exports use Indonesia's domestic reference price HBA, effective March 1, 2025. The HBA, previously a monthly benchmark, is now published bi-weekly by ESDM on the 1st and 15th of each month.

The HBA published on the first day is calculated as 30% of the average price in the second and third weeks of the month before last and 70% of the price from the fourth week of the month before last and the first week of the previous month. The benchmark price published on the 15th is calculated as 30% of the price from the fourth week of the month before last and the first week of the previous month, and 70% of the price from the second and third weeks of the previous month.