Jakarta. The Indonesian Mineral and Coal Suppliers Association (Aspebindo) has urged the government to grant a six-month transition period before implementing a new regulation requiring coal exports to use the government-set benchmark price (HBA). The policy, established under the Energy and Mineral Resources Ministry’s latest decree, took effect on March 1, 2025.

Aspebindo Vice Chairman Fathul Nugroho said the association supports the government’s efforts to improve governance in the coal sector. However, he emphasized the need for flexibility to ensure the policy does not disrupt business continuity or export stability.

“As an association representing coal industry players, we fully support policies aimed at improving governance. However, we also believe adjustments are necessary to ensure smooth implementation without harming business operations and export flows,” Fathul said on Tuesday.

Fathul stressed the importance of an adequate transition period, clear dissemination, and flexibility in price-setting to maintain Indonesia’s competitiveness in global coal markets. He proposed that exporters be given six months to adjust to the HBA pricing requirement to prevent contract cancellations and potential export volume reductions.

“The transition period would allow exporters time to align with international buyers and avoid abrupt contract terminations,” he said.

Aspebindo also called for greater clarity on how the HBA pricing will be formulated in relation to coal sales prices (HPB), considering the varying quality of coal in each shipment. Fathul suggested that price updates be based on the final certificate of analysis (COA) for each export transaction to ensure fair pricing for businesses.

“Regarding the recently issued ministerial decree on benchmark pricing, which took effect on March 1, 2025, we urge the government to introduce a six-month grace period following its announcement,” he said.

The government’s dissemination event for the decree took place on Feb. 26, just three days before the policy came into force. Fathul argued that this was insufficient time for industry players to adapt.

“This timeline is too short for businesses to make necessary adjustments and ensure smooth policy implementation,” he said.

Aspebindo also suggested that contracts signed before the decree’s enforcement should remain valid under their original terms to maintain trade stability and buyer confidence in Indonesia’s coal sector.

On the issue of using HPB as the floor price for coal sales, Aspebindo recommended a more flexible approach that accommodates variations in coal quality. “A rigid floor price policy should consider market dynamics and allow room for industry players to adapt,” Fathul said.

Add as a preferred source on Google +