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Another commodity boom: Blessing or curse in disguise?
A heavy reliance on coal exports also leads to unsustainable exports and a more volatile exchange rate.
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Last year was a good one for coal miners in Indonesia and the party is expected to continue in 2018. (JP/Arya Dipa)
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ast year was a good one for coal miners in Indonesia and the party is expected to continue in 2018. Indonesia’s coal reference price (Harga Batubara Acuan, based on 6,322 kcal/kg gross as received [GAR] coal) reached US$101.86 per metric ton in March 2018, the highest since 2012.
As of June 2018, the reference price stood at $96.61 per metric ton, with growth rates of 8 percent month-on-month and 28 percent year-on-year.
Given the bullish price, many coal miners have begun investing again, purchasing land, exploring new areas and buying heavy machinery to increase production. Even smaller companies that had been dormant for some time have resumed and expanded operations.
Domestic production is forecast to increase to 485 million metric tons in 2018, up by 5 percent from 461 million metric tons in 2017. About four-fifths of the production, however, is exported to markets abroad such as China and India.
