Coal Prices Drop to Rp1.69 Million per Tonne as Global Supply Pressures Persist
The benchmark coal price (HBA) for the first half of April 2026 has fallen to US$99.87 per tonne, continuing the weakening trend from US$103.01 per tonne in the second half of March 2026. This decline confirms that pressures in the global coal market have not fully eased.
The determination is contained in Ministerial Decree of Energy and Mineral Resources Number 135.K/MB.01/MEM.B/2026, effective from 1 April to 14 April 2026. In the regulation, the government divides the HBA into four categories based on coal calorific values.
For the first half of April 2026, the details are as follows:
The drop in the main benchmark coal price occurs amid the government’s previous move to slash the 2026 coal production target to around 600 million tonnes. This figure is about 190 million tonnes lower than the 2025 production realisation of 790 million tonnes.
The quota cut was driven by supply-demand imbalances in the international market throughout 2025. Excess supply is seen as the main factor pressuring coal prices in recent times.
However, the market situation shifted sharply in early March 2026. A conflict involving the US, Israel, and Iran pushed coal prices surging from below US$120 per tonne to breaching US$130 per tonne in just about a week.
Amid this volatility, Minister of Energy and Mineral Resources Bahlil Lahadalia has opened the possibility of measured relaxations to the coal production quota policy. This option signals that the government is still preparing room for adjustments if global market turbulence continues.
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