Indonesia Bans Coal Exports, PH and Other Asian Countries Urge to Lift Decision

On Monday, the Philippines followed its other Asian neighbors in calling upon Indonesia to lift its ban on coal exports in an effort to support economies that are dependent on the fuel source. The move was done after Energy secretary Alfonso Cusi sent a letter through the Department of Foreign Affairs addressed to Arifin Tasrif, Indonesia’s Minister of Energy & Mineral Resources.

Indonesia held off its coal trade at the beginning of the year despite being the world’s biggest exporter due to its inventory levels reaching critically low, which could affect its domestic power. As a result, coal prices in China and Australia surged over the past week while vessels set for Japan, China, South Korea, and India still remain in Indonesia’s main coal port of Kalimantan.

The Philippines already has ongoing efforts to transition into a green economy. However, the country is still very much reliant on coal and it purchases most of its supply from Indonesia as well aside from Australia and Vietnam. Based on government data, approximately 42.5 million tons — or 70% of its 2020 coal supply — were imported.

Coal accounts for 60% of the Philippines’ energy mix, with 2.3 million tons per month being sourced from Indonesia in 2021. Senate energy committee head Senator Win Gatchalian has likewise urged the Department of Energy (DOE) to prepare contingency measures should Indonesia’s export ban persist, such as identifying other coal suppliers, as it could significantly disrupt the country’s power.

Source: Reuters