Major coal benchmark prices in Asia have risen to their highest\nlevels in almost two years, triggered by new Indonesian export\nregulations that threaten to disrupt shipments. This situation is\ntightening supply amidst rising demand for power plant fuel as the\nsummer season approaches.<\/p>\n
According to Refinitiv data, coal prices closed at US$1_03.35 per\ntonne on Monday (8\/6\/2026), marking the highest position since October\n2024, or approximately 20 months. Notably, in May 2026, Indonesia\nannounced that PT Danantara Sumberdaya Indonesia (DSI) would take\ncontrol of the shipment of several strategic commodities, including\ncoal. The new system, implemented in June, has caused market confusion\nand delays in shipments from the world\u2019s largest coal exporter, leading\nto expectations that Australian coal supply will help fill the market\ngap.<\/p>\n
Coal demand is also expected to rise in the coming months as hotter\nweather hits Northeast Asia, increasing air conditioning usage in major\nconsumer markets like China. Simultaneously, countries such as Japan are\nincreasing coal usage to reduce reliance on Liquefied Natural Gas (LNG)\nafter the closure of the Strait of Hormuz and attacks on major LNG\nexport facilities in Qatar disrupted approximately 20% of global supply\nflows. Bloomberg data indicates that coal-fired power plants in Japan, a\nkey buyer of Australian coal, are operating at higher levels than last\nyear. Consequently, the Newcastle contract price curve has shifted to a\nbackwardation structure, where short-term delivery prices are higher\nthan future prices, typically signalling tight market supply.<\/p>\n
In recent developments, the Minister of Energy and Mineral Resources,\nBahlil Lahadalia, has decided to provide measured relaxation for\nnational coal production. This will be regulated through revisions to\nthe 2026 Work Plan and Budget (RKAB).<\/p>\n
He stated that this move is a response to rising global coal prices\ndriven by escalating global geopolitical tensions. Bahlil noted that\nrelaxing domestic coal production could benefit the state,\nentrepreneurs, and the public. \u201cRegarding the RKAB, including coal, we\nare closely monitoring the geopolitical tensions in the Middle East and\nglobal fluctuations. Ideally, the government, entrepreneurs, and the\npeople want good prices and high production so that entrepreneurs\nprofit, the state profits, and the people experience positive impacts.\nOn that basis, we will provide measured relaxation; meaning, if prices\nare good, we will increase production. If prices begin to peak, we will\nimplement policies to maintain the supply-demand balance,\u201d he explained\nfollowing a meeting with the Deputy Speaker of the House of\nRepresentatives, Sufmi Dasco Ahmad, and Danantara COO Dony Oskaria at\nthe DPR Building on Monday.<\/p>\n
He added that with the current upward trend in coal prices,\nincreasing production would benefit the country. \u201cWe will monitor global\nprices; if they are favourable, we will implement measured relaxation.\nThe goal is to secure good prices and ensure foreign exchange inflows,\u201d\nBahlil said. The government continues to monitor global geopolitical\ndevelopments and their impact on world coal prices.<\/p>\n
As previously noted, the government had set 2026 production targets\nin the RKAB at approximately 600 million tonnes. This represents a 24%\ndecrease compared to the 2025 production realisation, which reached 790\nmillion tonnes.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-shakes-global-coal-market-as-prices-hit-20-month-high-1780965896", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }