Background

The global COVID-19 pandemic has strongly affected demand and price of coal in domestic and overseas markets.

On production side, the Covid-19 pandemic have changed the working conditions and the coal supply chains that could affect to the coal production level. It is reported that a number of small coal mining companies are forced to temporarily halt its operation due to the lower coal price worsened by the impact of Covid-19 pandemic.

On the demand side, exporting countries decreased export demand for coal that lead to disruptions in the value chain and coal price.

Indonesia, as the world’s largest coal thermal exporter targets to produce 550 million tons. As of July, the government recorded the production volume at 300.75 million tons, or 54.68 percent of total full year target.

Meanwhile, the benchmark coal price (HBA) of July 2020 hit the lowest level at US$52.16 per ton since February 2016 when the price hit $50.92 per ton.

Indonesian Coal Mining Association (APBI) has called on the country’s producers to cut production this year in order to tame the oversupply situation and improve the coal price.

The Indonesia Coal Market Summit which would be held on October 20 via online webinar, would be the meeting between coal producers, buyers and traders to discuss the impact of Covid-19 on coal sector and the projected supply and demand market trend.

Program