In its February 2024 Provincial Economic Report (LPP), the Bank Indonesia Representative Office (KPwBI) of North Kalimantan projected continued growth in the province’s mining sector—particularly coal mining—throughout the year, albeit at a slower rate compared to 2023.
Wahyu Indra Sukma, Head of KPwBI North Kalimantan, stated that the sector’s stability aligns with expectations of normalized global energy commodity demand amid a broader economic slowdown in key export markets.
He added that the anticipated slowdown in mining sector performance reflects the end of the commodity boom cycle, which peaked in 2022. The fisheries sector, another important part of North Kalimantan’s economy, is also experiencing slower growth compared to last year.
“This condition aligns with expectations of a supply surplus, partly due to trade embargoes related to nuclear waste concerns, as well as the economic slowdown in export destination countries,” Wahyu explained.
Reference Coal Prices (HBA) – March 2024 Update
As of March 2024, the Indonesian government set the following benchmark coal prices (HBA – Harga Batubara Acuan) based on gross calorific value (GAR):
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6,322 kcal/kg GAR: USD 109.77 per ton – down 12% from USD 124.95 in February
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5,300 kcal/kg GAR (HBA I): USD 88.77 per ton – up USD 1.12 from USD 87.65 in February
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4,100 kcal/kg GAR (HBA II): USD 56.83 per ton – down 1.75% from USD 57.86 in February
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3,400 kcal/kg GAR (HBA III): USD 37.60 per ton – up slightly from USD 37.54 in February
These prices are determined based on guidelines outlined in Decree 227.K/MB.01/MEM.B/2023 by the Ministry of Energy and Mineral Resources (ESDM), replacing the previous decree (41.K/MB.01/MEM.B/2023), which was considered less reflective of actual market transactions.
Despite the price fluctuations, the coal mining sector in North Kalimantan continues to show positive growth momentum heading into the remainder of 2024.