President director of Adaro Energy, the owner of Adaro Indonesia, Garibaldi Thohir, said earlier that they would set output at a range of 52 to 54 million mt in 2016, around 7% lower compared to targeted output in 2015 of 54 to 56 million tons. “We sell most of our coal under long-term contracts and only a little we offer on the spot market. We will reduce the amount [of coal offered] on the spot market,” he said.

The ministry’s director for coal, Adhi Wibowo, said small miners with less than 3 million mt in production tended to cut output because they were the most affected by plunging prices. Meanwhile, big firms continue to increase their production.

Indonesia’s coal reference price (HBA) for December was set at $53.51/mt, around 16% lower compared to a reference price of $63.84/mt set in January. The December price is around 57% lower compared to the all-time high HBA price of $127.05/mt set in February 2011.