Head of the Communications, Public Information Services, and Cooperation Bureau (KLIK) of the Ministry of Energy and Mineral Resources, Agung Pribadi, said that the increase was due to increasing global demand for coal.
“The increase in HBA in February 2022 was due to the high demand for global coal commodities,” Agung said in a written statement, Tuesday (8/2). Another factor influencing the increase in HBA, said Agung, was the problem of natural gas supply in Europe. European countries are currently re-using coal energy for power generation needs. “Most European countries have turned to coal for power generation,” said Agung.
Agung said that the increase in HBA could not be separated from the decision of the Indonesian government, which had implemented an export ban policy as of January 1, 2022, to address domestic needs. The government itself finally lifted the ban for companies listed as having complied with the DMO provisions on January 31, 2022.
To note, HBA is the price obtained from the average index of the Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platt’s 5900 in the previous month, with quality equivalent to 6322 kcal/calorie. kg GAR, Total Moisture 8%, Total Sulfur 0.8%, and Ash 15%.
Later, this price will be used directly in the sale and purchase of coal commodities (spot) for one month at the point of delivery of sales on a Free on Board basis on a transport vessel (FOB Veseel).
There are two derivative factors that influence the movement of HBA, namely, supply and demand. In terms of supply derivatives, it is influenced by season (weather), mining techniques, supplier country policies, to supply chain technicalities such as trains, barges, and loading terminals.
Meanwhile, the derivative demand factor is influenced by falling electricity demand, which correlates with industrial conditions, import policies, and competition with other energy commodities, such as LNG, nuclear, and hydro.