Press Release

Facing 2017, PT Bukit Asam (Persero) Tbk (PTBA) plans to change the coal contract with PT Perusahaan Listrik Negara (Persero) or PLN.
Corporate Secretary of PTBA Adib Ubaidullah, as quoted by Kontan on Sunday (4/12/2016), said the contract changes will take place in 2017. And now, still in negotiation and discussion.
"By 2017 there will be changes to the contract and is currently still in negotiation and discussion," said Adib Ubaidillah.
Meanwhile, coal reference price (HBA) in December was US$101.69 per ton. HBA December rose 19.93% compared HBA November at US$84.79 per ton.

Head of Communications, Public Information Service, and the Ministry of Energy and Mineral Resources Cooperation Sujatmiko said the fall in world coal supply and increasing demand is a major cause of the rise in commodity prices.

"Coal prices are still rising because China restricts production, while the need for increased energy in the winter," he said, Sunday (4/12/2016).

Deputy Executive Director of the Indonesian Coal Mining Association Hendra Sinadia explained, the increase in prices was significant not only driven by the decline in coal production from China, but also fueled by rising demand ahead of winter that occur each year end.

"Prices are still affected by the reduction of production from China. Meanwhile, in the fourth quarter is generally an increase in demand during the winter," he said as quoted by Bisnis Indonesia.
Since the main driving factor is the decline in production, the price of coal is very risky to back down in the next year. The reason, China's policy in curbing production is expected to be back loosened.