Indonesia has lowered its thermal coal reference price, or Harga Batubara Acuan (HBA), for all grades for the second half of February, according to the Ministry of Energy and Mineral Resources’ website Feb. 16, following uncertainty surrounding Indonesia’s 2026 production quotas, and fewer deals amid limited supply.

The price of 6,322 kcal/kg GAR thermal coal, which has traditionally served as the basis for HBA pricing, fell 3.05% from H1 February to $102.87/mt in the second half of February.

The price for the mid-CV 5,300 kcal/kg GAR grade was also revised to $71.74/mt in H2 February, 3% lower from the first half of February.

HBA for the most liquid 4,100 kcal/kg GAR grade fell as well, dropping by 1.80% to $47.34/mt for the second half of February.

Platts, part of S&P Global Energy, assessed the 4,200 kcal/kg GAR grade at an average of $48.45/mt FOB during H1 February, up from an average of $47.20/mt FOB during H2 January. The grade was last assessed at $49.75/mt FOB on Feb. 13.

Additionally, the HBA price for low-CV 3,400 kcal/kg GAR grade fell by 5.52% from H1 February to $33.85/mt in H2 February. Platts assessed 3,400 kcal/kg GAR at an average of $32.14/mt FOB during H1 February, up from an average of $31.36/mt FOB in H2 January. The grade was last assessed at $32.55/mt FOB on Feb. 13.

Following the Indonesian government’s tentative RKAB production cuts for 2026, most Indonesian miners temporarily halted prompt cargo offers as they awaited further clarity on final quotas. Several major mining regions of Indonesia also continued to face heavy rains and flooding, which further resulted in logistical and production issues.

Spot activity remained subdued after the release of the suggested output reductions, ranging from unchanged to the higher end of 80%. Even China, typically a major buyer, chose to stay on the sidelines, having largely stocked its inventories ahead of the Lunar New Year celebrations.

The few offers that emerged in the market were at elevated prices, although bid-offer disparity remained high, market sources said.

Amid this uncertainty, buyers from India, South Korea, and Bangladesh turned to alternative sources such as Australia, South Africa, and Russia to procure coal cargoes.

Indonesia’s ESDM publishes reference prices for four grades of Indonesian coal twice a month, and miners adjust their selling prices based on the nearest reference price and other specifications, such as ash and moisture content.

For the HBA released on the 15th of a given month, the calculation consists of 70% of coal sales prices submitted by miners during the second week to the third week of the previous month, and 30% of coal sales prices reported by miners during the fourth week of two months prior to the first week of the preceding month of the release.
Source: Platts