The government has set the Indonesian coal reference price for November at US$97.90 per ton, 2.97 percent lower than the price in the previous month, which was set at $100.89 per ton as a result of the global coal price, in response to China's ongoing import quota policy.
Energy and Mineral Resources Ministry spokesperson Agung Pribadi said the coal price decline was also sparked by the distribution issue in Australia and oversupply in Indonesia.
“The delay in coal distribution in Australia affected the ICE Newcastle index. There is also an oversupply in in our country as a result of slowing demand from India and China,” he told press on Monday.
This year, the government targets national coal production of 485 million tons, 25 percent of which is for the domestic market obligation, which is equal to 121.25 million tons.
Data from the Energy and Mineral Resources Ministry up to September show that coal production had reached 70.9 percent of the annual total target, or equivalent to 344 million tons.
The government continued its policy to cap the coal price for electricity purposes at $70 per ton, aiming to maintain the electricity price at an affordable level.