Commodities
Indonesia’s Move to Control Coal Prices Faces Chinese Pushback
Indonesia is the world’s largest coal exporter and China, the top importer, is its biggest market.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
The Indonesian government’s plan to regulate the price of coal exports is facing pushback from its largest customer, as firms in China balk at paying higher costs as other suppliers lower their rates.
Indonesian Energy Minister Bahlil Lahadalia this week issued a regulation forcing coal exporters from March 1 to use the official pricing standard, or Harga Batubara Acuan. The intention is to wrest control from independent pricing agencies that have lowered rates considerably compared to the Indonesian benchmark, Lahadalia said earlier this month.