Indonesia sets tiered coal benchmark prices – energy ministry

JAKARTA, March 20 (Reuters) – Indonesia has set a tiered coal benchmark price based on calorific value and using a new formula to calculate the price starting in March, the energy ministry said on Saturday.

The energy ministry set the March coal benchmark price at $283.08 a tonne for coal with a calorific value of more than 6,000 kilocalories per kilogram, calculated based on an average coal selling price over the previous two months, the ministry said in a statement. Indonesia previously used an average price of the main coal indices to calculate the price.

“The coal benchmark price formula in principle aims to obtain a coal price reference that is acceptable to the market while taking into account state revenue,” energy ministry spokesman Agung Pribadi said.

The new coal benchmark price came into effect starting March 16.