Jakarta, CNBC Indonesia – Coal prices rose again. The price of the black stone is getting more comfortable at the level of US$ 400/ton.
Yesterday, the price of coal on the ICE Newcastle (Australia) market closed at US$ 435/ton. It was up 6.87% from the previous day and touched a record high since at least 2008.
This makes coal prices rise for two days in a row. In those two days, the price jumped 21.35%. Wow…
The news from Indonesia seems to be driving the price of coal. This year, producers have a production target of 663 million tons, but that target may be difficult to meet.
Hendra Sinadia, Executive Director of the Indonesian Coal Mining Association (APBI), said that since the beginning of 2022 the Indonesian government has been closely monitoring the implementation of the obligation to fulfill domestic coal.Domestic Market Obligation/DMO). It learned from experience that the national power plant had experienced a coal supply crisis.
The government, continued Hendra, really monitors the implementation of the DMO. Producers who do not comply are subject to export ban sanctions.
“We heard that there are already several buyers, even a number of embassies in Europe are trying to facilitate (exports) with companies in Indonesia. But manufacturers don’t seem ready to fulfill these requests,” said Hendra, as quoted by Reuters.
Hendra is of the view that the production target of 663 million tons is too optimistic. For the record, the target was up almost 8% from last year.
Data from the Ministry of Energy and Mineral Resources (ESDM) states that production in January and February 2022 is estimated at 74.41 million tons. Under the same period in 2021, namely 92.79 million tons.
In fact, Indonesia’s position is very strategic in the world coal market. Indonesia is the largest exporter of thermal coal.
In 2019, Indonesia’s coal exports reached 455 million tons. Quite far above Australia in second place with 393 million tons.
So if supply from Indonesia is hampered, the global coal market will be greatly affected. No wonder the price of this commodity shot up.
CNBC INDONESIA RESEARCH TEAM
(aji / aji)
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