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WELCOME TO PT COALINDO ENERGY PDF

 

BACKGROUND

In 2004 Indonesia was the second largest coal exporting country in the world, exporting  90 million tons against  Australia at 107 millions tons. Today,  Indonesia remains one of the world's top coal producers and in 2008 was the largest exporter of thermal coal, exporting about 180 million tons from a production volume of 239.41 millions tons. Utilities, power generators and other end users in India, Japan, South Korea, China, Taiwan and elsewhere in Asia are turning increasingly to Indonesia as a key supplier of competitively priced coal.

 

Assessing the commercial value of Indonesian coal had been challenging due to the lack of ready, transparent  and independent price markers. International price indices seemed inadequate in assessing  Indonesian coal prices owing to specification differences and autonomous dynamics between the markets in Indonesia and  sources from other countries. There was critical need for Indonesia to produce its own independent price benchmark.

 

To address this concern, PT Coalindo Energy worked together with Argus Media Limited (United Kingdom) in 2006 to produce the Indonesian Coal Index (ICI), a series of four Indonesian Coal price assessments that follows a published methodology  to reliably  value the market prices of Indonesian coal.

 

 

 

OBJECTIVE

The ICI serves as a critical tool for assessing the most widely spot-traded grades of Indonesian coal. The growing acceptance of the Indonesian Coal Index (ICI) by buyers and sellers is stimulating the development of a vibrant Indonesian spot coal market  by employing an impartial and practical approach to assessing  prices  for coal physical trade and its associated derivative markets.

 

 

BENEFITS

Indonesia, as the worlds largest thermal coal exporting country, now possesses its own coal price index closely-linked to the fundamentals, dynamics and specifications prevalent to the  Indonesian coal sector.

 

1. The ICI offers producers, consumers, and traders an independent, transparent and reliable price reference for analysis and trading of Indonesian coal domestically or globally.

 

2. The ICI calculates and assesses the five most widely traded grades (GAR) of Indonesian Thermal Coal,  specifically  6500 Kcal/kg (high), 5800 Kcal/kg (medium) and 5000 Kcal/kg (sub-bituminous), 4200 Kcal/kg (low) and 3400 Kcal/kg (low).

 

3. ICI is used by the Indonesian government to formulate Indonesian Coal Price Reference (ICPR). It is the most influential component for these grades due to its practical and targetted assessment of these five grades.

 

4. With improved price transparency in the market, coal companies will be in a better position to balance, strategize, analyze  and manage their operations and commercial activity. A reliable ICI benchmark would allow companies to value their coal from the investment, financial and production level, right through the supply chain.