Indonesian President Caps Domestic Coal Prices

Indonesian President Joko Widodo has signed a government regulation authorizing the energy and mineral resources minister to set the price of coal for the domestic market, Reuters reported. Coal and Minerals Director-General Bambang Gatot told parliament, “Further details on the pricing plan will be outlined in a ministerial decree expected to be announced soon.”

Government officials said Indonesia plans to keep electricity tariffs and fuel prices unchanged this year and the next by increasing subsidies. Indonesian domestic media reported that the energy ministry has agreed to set prices at $70/ metric ton (mt). Indonesian Coal Benchmark Price was set at $101.86/mt for March, its highest since May 2012. The government has been working on plans to regulate domestic coal prices since late 2017, and the discussions have impacted some coal miners’ share prices.

As featured in Womp 2018 Vol 04 -