Indonesia publishes monthly coal price reference

Brisbane (Energy Publishing) - The Indonesian government has begun publishing a monthly coal price reference to be used by producers to price all future coal sales.

The coal price reference, which has been established to function with Indonesia’s new mining law enacted last year, aims to prevent transfer pricing and increase government revenue from royalties. It is calculated from the monthly average of four coal indices – NEX, Newcastle globalCoal Index, Platts-1 and Indonesia Coal Index.

The price reference is found on the Ministry of Energy and Mineral Resources’ directorate general of mineral, coal and geothermal website (www.djmbp.esdm.go.id) and is based on coal with a gross calorific value of 6,322kcal/kg gar, total moisture content of 8%, ash content of 15% and sulphur content of 0.8%.

The coal price reference for February 2010 is US$87.81/t FOB Vessel.