PT Bukit Asam Tbk (PTBA) supports the government’s policy regarding the implementation of the Coal Reference Price (HBA) as a benchmark for exports starting from March 1, 2025.

This state-owned mining company hopes that the HBA policy as an export benchmark will maintain the competitiveness of Indonesia’s coal industry in the international market.

PTBA's Corporate Secretary, Niko Chandra, stated that PTBA supports the government’s efforts to create stability in coal prices, protect national interests, and optimize state revenues.

"Regarding the HBA, PTBA hopes that the determination of the HBA will continue to maintain the competitiveness of Indonesia’s coal industry in the international market," said Niko to Kontan on Saturday (March 1).

As known, the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, revealed that this policy aims to increase Indonesia's independence in determining coal prices in the global market.

"Until now, our reference coal price has been controlled or determined by other countries. We need to have independence, we need nationalism. We shouldn't let our coal price be determined by others," said Bahlil.

Although this policy has been socialized since February 26, 2025, business players are still facing several challenges in its implementation.

The Acting Executive Director of the Indonesian Coal Mining Association (APBI), Gita Mahyarani, revealed that many companies still do not understand the implementation mechanism, especially regarding ongoing export contracts."

“We want a transition period or grace period if this regulation is applied mandatorily. Renegotiating contracts with buyers takes time and a lengthy process,” said Gita to Kontan on Friday (February 28).

Concerns also came from the Executive Director of the Indonesia Mining Association (IMA), Hendra Sinadia. He believes that this policy could pose challenges in convincing overseas buyers.

According to him, transactions for Indonesian coal have generally referred to internationally recognized price indices.

“In Article 159, paragraph (2) of Government Regulation 96/2021, it is stated that the Minister determines the Coal Benchmark Price (HPB) using market mechanisms or international price indices. Meanwhile, the HBA could be used as the basis for royalty imposition,” explained Hendra.

Hendra added that many buyers, especially from China, are still uncertain about this policy. “I’ve heard many concerns from buyers at the 2nd China Coal Import and International Summit in Guangzhou on February 27,” he said.

Hendra also highlighted the legal aspect in the implementation of this policy. According to him, sudden changes in regulations could make it difficult for exporters to anticipate the impact.

In addition, the technical mechanisms and sanctions for violators have not been explained in detail, which could make potential buyers more cautious about purchasing coal from Indonesia.