Indonesian coal is priced by its energy content. Most export coal is sold against the Indonesian Coal Index (ICI), a weekly price for five standard grades from about 6,500 down to 3,400 kcal/kg GAR. The government also sets a monthly reference price, the HBA, used for royalties. Your actual price per ton is the index for your grade, adjusted for quality, plus freight to your port.
In 2026, prices recovered from a weak start. According to the IEA, Indonesian 4,200 kcal/kg coal rose from about $45 per tonne FOB at the start of the year to about $66 per tonne by the end of August.
The ICI grades
| Index | Calorific value (GAR) | Typical buyers |
|---|---|---|
| ICI 1 | 6,500 kcal/kg | High-efficiency power plants, often blended |
| ICI 2 | 5,800 kcal/kg | Power plants and industry |
| ICI 3 | 5,000 kcal/kg | Power plants and cement |
| ICI 4 | 4,200 kcal/kg | Large power plants in China, India and Southeast Asia |
| ICI 5 | 3,400 kcal/kg | Mine-mouth and nearby power plants, blending |
Most Indonesian export volume is in the middle and lower grades, around 3,400 to 5,000 kcal/kg GAR. Read more in our guide to Indonesian coal and coal grades.
What is the HBA?
The HBA (Harga Batubara Acuan) is Indonesia’s monthly coal reference price, set by the Ministry of Energy and Mineral Resources. It is used to calculate royalties and serves as a government benchmark for export sales. Since 2023 it has been published for several calorific value bands rather than one high-grade figure. Buyers usually still negotiate against the ICI or another market index, so check which index your contract uses.
How Indonesian coal compares with other benchmarks
| Benchmark | 2025 average | September 2026 |
|---|---|---|
| Australian thermal coal, Newcastle 6,000 kcal | $108.40 | $147.10 |
| South African thermal coal, Richards Bay 6,000 NAR | $94.90 | $98.20 |
| Indonesian 4,200 kcal GAR | About $66 (end of August, IEA) |
Indonesian coal costs less per tonne because it has less energy per tonne. Compare grades on cost per unit of energy delivered to your plant, not price per tonne.
What drives the price in 2026
- Chinese and Indian demand. They are Indonesia’s largest buyers. Hydro output, domestic production and stock levels in China move the market quickly.
- Indonesian supply policy. Production fell from 836 Mt in 2024 to 790 Mt in 2025, according to the energy ministry, and the IEA expects exports to fall again in 2026. Production quotas, export levies and permit rules all affect availability.
- Competing supply. Disruptions elsewhere, such as the force majeure declared at Colombia’s Cerrejón mine on 1 June 2026, tighten the wider market.
- Gas and oil prices. High gas prices make coal more attractive to power generators. Fuel costs also raise mining and freight costs.
- Freight. Shipping rates and distance can change which origin is cheapest for your port.
How your price per ton is built
- Index price for the nearest ICI grade, for the shipment period
- Quality adjustment for the actual calorific value, plus penalties or rejection limits for ash, sulphur and moisture
- Delivery terms: FOB at the loading port or anchorage, or CFR or CIF to your port
- Shipment size and loading: mother vessel, barge or geared ship
- Contract length: spot cargoes or term supply
For quality checks, see how to assess coal quality.
Buying Indonesian coal through Agromer
Agromer holds mandates for Indonesian thermal coal for power plants and industrial buyers. We work with an end-buyer LOI, payment by 100% DLC or SBLC, and SGS inspection at loading. Send us your specification, monthly quantity, contract length and discharge port. See our Indonesian coal supply page.
Frequently asked questions
What is the price of Indonesian coal per ton?
It depends on the grade. According to the IEA, 4,200 kcal/kg GAR coal was about $66 per tonne FOB at the end of August 2026. Higher grades cost more per tonne.
What is the ICI coal price?
The Indonesian Coal Index is a weekly price assessment for five standard Indonesian grades, from ICI 1 (6,500 kcal/kg GAR) to ICI 5 (3,400 kcal/kg GAR). Many export contracts are priced against it.
What is the HBA?
The HBA is the Indonesian government’s monthly coal reference price, used for royalties and as a benchmark for export sales.
Why is Indonesian coal cheaper than Australian coal?
It has lower calorific value and higher moisture, so it delivers less energy per tonne. It is also close to major Asian buyers.
Will Indonesian coal prices rise?
No one can say for certain. The IEA expects Indonesian exports to fall in 2026, which supports prices, while weaker Chinese imports push the other way.
How much coal does Indonesia export?
About 514 to 517 Mt in 2025, according to the energy ministry and the IEA, making it the world’s largest thermal coal exporter.