Hba aug 2013

Indones ian Coal Pr i ce Reference | HBA

August 2013

Source : ESDM

Indonesia Reference Price (HBA)

Dito Yudhanto Sulong

Indonesian Coal Price Reference August 2013

Harga Batubara Acuan (HBA) is Indonesian coal price reference with equality

calorific value of 6,322 kcal/kg GAR, moisture content of 8%, sulfur content of

0.8% and ash content of 15% which is an average of 4 coal price index: Indonesia

Coal Index/Argus Coalindo, Platts, New Castle Export Index, and the New Castle

Global Coal Index.

• Indonesian Coal Index/Argus Coalindo

Coalindo assessments are derived from the inputs supplied by its panelists

on a weekly basis. Coalindo applies reliability tests on the submissions, after

which the top and bottom 10% of submissions are eliminated. The

remaining submissions are then averaged for each grade assessed. These

final assessments are submitted to Argus as the Coalindo element of the

Argus/Coalindo Indonesian Coal Index.

• New Castle Export Index

The Newcastle Export Index (previously known as the Barlow Jonker Index

BJI), was developed as an indicator of the spot price of thermal coal in the

Asian market. It reflects the price at which a willing seller and a willing

buyer are prepared to do business in the spot market for a prompt cargo of

thermal coal loaded FOB vessel Port of Newcastle, NSW Australia. Newcastle

is the world's largest export coal loading facility and Newcastle coal is a key

reference coal in the Asian thermal coal market.

• Platts

The price assessments are formulated based on systematic Market on Close

practices and reflect market values at the end of the trading day, defined by

Platts as 4 pm Eastern prevailing time for North American coal markets.

Transactions, bid and offers, and other market information are compared

and analyzed. While all available information on trading activity that occurs

throughout the day is considered, bids and offers made and transactions

done are analyzed in relation to time of day to formulate values at the end of



the trading day.

• Global Coal New Castle Index

The globalCOAL Newcastle Index values are calculated and supplied daily by

globalCOAL. The Indices are a representation of week to date or month to

date prices, calculated from the globalCOAL Newcastle Index traded on

globalCoal.

Figure 1: Indonesian Coal Price References (HBA) in (USD / MT)

Based on the HBA, then determined Harga Patokan Batubara (HPB). HPB is an

achievement that can benefit both parties. Both producers and consumers have

had a fairly clear that aids in better pricing for the spot price or the contract. As

for the government is to price provisions for fixation of state revenues

increasingly clear and transparent.

There are 8 HPB price marker, representing the coal quality ranging from 4200

to 7000 kcal/kg. Reasons for the selection marker is to reflect the range of each

quality, the most widely traded/dominant in the market, and is commonly

known in the market.

Aug ’13, 76.70



Table 1: The 8 HPB Marker

Figure 2: Indonesian Coal Distributions Based on Calorific Value

Furthermore, what about coal that having calorific value outside of the 8

categories? it is determined with interpolation using the HPB marker with using

a specific formula.

Determination of HBA and HPB done each month and announced through a letter

to the relevant institutions and is posted well in www.djmbp.esdm.go.id. The

Ministry of Energy and Mineral Resources has published the HBA for August,

USD 76.7 / ton.

Hba aug 2013

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