Jakarta (Indonesia Window) – The Indonesian Ministry of Energy and Mineral Resources has set a new benchmark coal price of 203.69 U.S. dollars per ton in March 2022.

The ministry’s spokesperson, Agung Pribadi, said this month's benchmark price rose by 15.51 dollars per ton compared that in February 2022 of 188.38 dollars per ton.

"The increasing escalation of geopolitical tensions between Russia and Ukraine has made global coal commodity prices soar," he said in a statement here on Monday (March 7).

Agung explained that geopolitical tensions in Eastern Europe between Russia and Ukraine caused uncertainty in gas supply.

Russia is one of the largest gas producers in the world, so that it impedes gas supplies to Europe.

"European countries have started to switch to coal as an energy source," Agung said.

The benchmark price was obtained from the average of Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platt's 5900 in the previous month with quality equivalent to 6,322 kcal/kg GAR calories, total moisture 8.0 percent, total sulfur 0.8 percent, and 15 percent ash.

This price will be used directly in the sale and purchase of coal commodities for one month at the point of sale for free on board.

Reporting by Indonesia Window