Statistics Indonesia (BPS) noted that coal exports in January 2024 fell by almost 30% on an annual basis to USD 2.41 million compared to USD 3.43 million in January 2023. In comparison with the previous month, or December 2023, exports fell 19.68%.

The Executive Director of the Indonesian Coal Mining Association (ICMA), Hendra Sinadia, said the decline was due to the lower coal price in January 2024. "It is due to lower prices compared to the previous period," he told Katadata.co.id on Friday (16/2).

Hendra added, however, that falling prices were not the main factor in suppressing exports. "Actually, it is more about the price, and usually, the production level and export volume are lower at the beginning of the year," he said.

In line with Hendra, Acting Head of BPS Amalia Adininggar Widyasanti said that the decline in coal exports was due to a decline in volume and prices.

"There is a downward trend in coal prices in the global market. As the decline in value is deeper than the volume, the decline in coal exports monthly is mainly due to the decline in prices," Amalia said at a press conference in Jakarta on Thursday (15/2).

Based on the countries, the biggest decline in coal exports to China fell to 25.08% and India to 17.11%. "The value of coal exports contributes 12.59% of the total exports in January 2024," he said.

For the record, coal prices have indeed experienced a significant decline throughout 2023. In January 2023, Indonesia's coal price benchmark (HBA) was still at USD 305.21 per ton, and the price of Newcastle coal, Australia, one of the global benchmark prices, was in the range of USD 350-390 per ton.

However, in January 2024, the benchmark had dropped to below USD 130 per ton, while the price of Newcastle coal was below USD 130 per ton, even touching USD 115 per ton on January 29. This implies that prices have fallen by more than 50% in the past year.

Image source: ANTARA Foto / Andri Saputra
Source: https://katadata.co.id/happyfajrian/berita/65cedc232fe6b/nilai-ekspor-batu-bara-merosot-30-apbi-karena-harga-turun-drastis