The objective of this paper is to develop a general pricing model for contract between coal producers and State Electricity Company in Indonesia with range of calorific value of coal from 4,000 untill 6,200 kilocalories/kilogram.
Work done is divided into two stages. Initially, data of 4 companies have been evaluated by using hedonic pricing analysis to define influential price parameters. The results of hedonic regression analysis indicate the effect and importance of calorific value and electricity price on steam coal prices. Finally, a general coal pricing model has been developed by taking into account the results of hedonic analysis.
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