Indonesia eases Philippine coal supply concerns

Manila sought clarity as Jakarta revamps coal exports.

Indonesia has assured the Philippines that its new coal export governance framework will not disrupt supply to partner economies, Manila’s Department of Energy (DOE) said as it seeks regulatory clarity from its principal source of imported coal.

Philippine Energy Secretary Sharon S. Garin secured the assurance during high-level meetings in Jakarta with Indonesia’s Coordinating Ministry for Economic Affairs, Ministry of Energy and Mineral Resources (MEMR), and state-owned PT Danantara Sumberdaya Indonesia (PT DSI).

The Philippines raised concerns over the impact of Indonesia’s new export framework on coal supply and existing commercial arrangements.

Coal remains important to the Philippine power sector, with DOE saying regulatory clarity would help local stakeholders adjust their procurement strategies.

Coordinating Minister Airlangga Hartarto and MEMR Vice Minister Yuliot Tanjung said the new export rules aim to improve transparency and traceability in coal transactions.

PT DSI is leading the initiative and "hopes to have the draft regulation released soonest", DOE said.

The Indonesian officials said the new framework is not intended to disrupt coal supply to partner economies that rely on the fuel for power generation and industrial use.

PT DSI told the Philippine delegation that the export mechanism would be implemented in phases, starting with documentation, transparency, and data consolidation before full implementation.

Existing contracts will remain unaffected where no irregularities are identified, the company said.

“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,” Garin said.

The two countries also discussed cooperation on liquefied natural gas (LNG) and renewable energy.

The Philippines expressed interest in small-scale LNG projects to supply off-grid islands, whilst both sides agreed to facilitate discussions between government agencies and state-owned enterprises on potential government-to-government LNG cooperation.

The meetings also covered the ASEAN Power Grid (APG), with the Philippines sharing the results of studies on the technical feasibility of cross-border power interconnection.

DOE said a bilateral memorandum of understanding (MOU) on power interconnection could be pursued alongside the wider APG agenda.

The Philippine delegation also sought updates on Indonesia’s domestic processes for signing the Enhanced MOU on the APG and ratifying the ASEAN Framework Agreement on Petroleum Security, with Indonesia reaffirming its commitment to completing the necessary requirements.

Garin also invited MEMR to participate in the 44th ASEAN Ministers on Energy Meeting, which the Philippines will host in October, and to convene the Philippines–Indonesia Joint Energy Working Group alongside the meeting.