The Manila Times·4 min read·medium

DOE: Indonesia assures PH of coal supply

E
Ed Paolo Salting
DOE: Indonesia assures PH of coal supply
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The Philippine Department of Energy has received assurances from Indonesia that coal exports will remain stable despite new Indonesian regulations. The Philippines relies on Indonesia for 99 percent of its coal imports, making this bilateral agreement critical for energy security.

THE Department of Energy (DOE) said on Friday it has received assurances from Indonesia that coal supply to the Philippines will remain stable, even as Jakarta overhauls its export rules for natural resources.Energy Secretary Sharon Garin led a Philippine delegation to Indonesia to get clarity on its new export governance rules for coal and other strategic resources, and to strengthen bilateral energy ties.The talks follow Indonesia's issuance of Government Regulation 24 of 2026, which introduced a new export framework requiring designated Strategic Natural Resource Commodities - currently coal, palm oil and ferro alloys - to be exported through PT DSI, the government's designated state enterprise.The DOE said that Indonesia's Coordinating Ministry for Economic Affairs head Airlangga Hartarto, and Ministry of Energy and Mineral Resources vice minister Yuliot Tanjung both acknowledged the need to keep coal flowing steadily to partner economies that depend heavily on it for power generation.Garin said the visit was prompted by concern among Philippine power plant operators that Indonesia's restructuring could mean smaller coal shipments, higher prices or an outright halt in exports.She noted the Philippines relies on imports for 95 percent of its coal needs, with Indonesia supplying 99 percent of it.The DOE, in a separate meeting with PT Danantara Sumberdaya Indonesia (PT DSI) - a state-owned firm under Indonesia's sovereign wealth fund - said that officials confirmed the new export framework will initially focus on documentation, transparency and data consolidation before full implementation begins.PT DSI officials said the changes are meant to strengthen governance and the long-term credibility of Indonesia's commodity exports, not disrupt existing trade, and that current contracts would remain intact provided no irregularities are found.Garin said Indonesian officials plan to release detailed guidelines within a few weeks, giving the Philippines time to prepare for any changes ahead of the framework's expected rollout in the first quarter of 2027.She added that the Philippine side had asked Indonesia to honor existing long-term contracts without changes, or, if adjustments do occur, to ensure lower coal prices.Indonesian officials responded positively, assuring the Philippines that contracts would be maintained and supply would continue.

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