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BUSINESS

Indonesia eases coal supply fears for Phl power sector

Maria Bernadette Romero·24 July 2026, 5:51 pm·1 MIN READ

Indonesia eases coal supply fears for Phl power sector

Indonesia has assured the Philippines that its planned overhaul of coal export rules will not disrupt shipments, easing fears over fuel supply for the Philippine power sector.

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    • Energy Secretary Sharon Garin

    Indonesia has assured the Philippines that its planned overhaul of coal export rules will not disrupt shipments, easing concerns over fuel supply for local power producers that depend heavily on Indonesian coal.

    Energy Secretary Sharon Garin said on Friday the assurance provides greater regulatory certainty for domestic power producers, helping secure near-term coal supply while opening the door for broader energy cooperation between the two countries.

    “Every partnership we build is about protecting the everyday lives of Filipinos. This commitment from Indonesia strengthens our efforts to keep our energy supply secure: helping hospitals care for patients, schools stay open, businesses create jobs, and families keep the lights on at home,” Garin said.

    According to the Department of Energy (DOE), Indonesian Coordinating Minister Airlangga Hartarto and Vice Minister Yuliot Tanjung said the planned reforms are designed to improve transparency and traceability in coal exports—not restrict shipments.

    State-owned PT Danantara Sumberdaya Indonesia (PT DSI), which is spearheading the initiative, said the draft regulations are expected to be released soon. Indonesian officials also assured the Philippine delegation that coal supplies and existing commercial arrangements will remain stable throughout the transition.

    The commitment came during separate meetings between the Philippine delegation and Indonesia’s Coordinating Ministry for Economic Affairs, Ministry of Energy and Mineral Resources, and PT DSI, where both sides also explored opportunities to expand energy cooperation beyond coal.

    The Philippines expressed interest in developing small-scale liquefied natural gas (LNG) projects for off-grid islands, while both governments agreed to facilitate discussions among relevant agencies and state-owned firms on possible government-to-government LNG cooperation.

    The two countries also discussed the ASEAN Power Grid initiative. The Philippine delegation shared studies showing the technical feasibility of cross-border power interconnection and expressed optimism that a bilateral memorandum of understanding on power connectivity could be pursued alongside the broader regional effort.

    In a separate meeting, PT DSI said Indonesia’s new export mechanism will be rolled out in phases, beginning with documentation, transparency and data consolidation before full implementation.

    The company said the reforms seek to strengthen governance and enhance the long-term credibility of Indonesia’s commodity exports, adding that existing contracts will remain unaffected as long as no irregularities are identified.

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