Indonesia's Ministry of Energy and Mineral Resources (ESDM) on May 15 continued to lift its benchmark coal reference prices or the HBAs (Harga Batubara Acuan) for the second half of the month, with all grades posting notable growth.

The HBA for 6,322 Kcal/kg GAR coal was set at $116.32/t, up $9.75/t or 9.1% from May 1.

The HBA I, gauging 5,300 Kcal/kg GAR, was priced at $80.34/t for the same period, rising $0.78/t or 1% from the first half of May. The HBA II, measuring 4,100 Kcal/kg GAR, was set at $57.61/t, up $1.95/t or 3.5% from the previous half, while the HBA III, basis 3,400 Kcal/kg GAR, was set at $39.35/t, an uptick of $0.59/t or 1.5%.

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.