The Philippines is seeking emergency supply assurances from Jakarta as Indonesia overhauls its coal export framework, a structural shift that threatens to destabilize Southeast Asia’s most coal-dependent power grid.

In an interview on Thursday, July 23, Energy Secretary Sharon Garin said the Department of Energy (DOE) is engaging Indonesian officials to cushion domestic power producers from impending trade disruptions.

Under a new regulatory policy, Jakarta is centralizing commodity export operations through state-backed PT Danantara Sumberdaya Indonesia, effectively ending direct private procurement channels.

Garin stressed that the country remains deeply dependent on Indonesian coal, which fuels approximately 40 percent of the national power mix and accounts for roughly 99 percent of total coal imports. “That will have an impact on our electricity, on our power supply,” she said.

Prompted by these concerns, Garin recently met with officials from Indonesia’s Coordinating Ministry for Economic Affairs, the Ministry of Energy and Mineral Resources led by Vice Minister Yuliot Tanjung, and Danantara. The DOE has also met with coal suppliers to discuss potential export arrangements.

“They understand our situation... They’re issuing guidelines in a few weeks to provide clarity on what will be implemented in the first quarter of next year," Garin said. "At least we have time to prepare if there are major changes.”

To hedge against supply disruptions, the DOE proposed a direct government-to-government arrangement if the new framework squeezes out private importers.

The framework, scheduled for release in a couple of weeks, is not expected to cause immediate disruptions, as Danantara noted trade rules will be rolled out in phases.

Garin welcomed Indonesia’s assurance that coal supply stability will be maintained for trade partners, emphasizing the need for regulatory clarity as local stakeholders adjust their procurement strategies.

Beyond coal, the DOE aims to broaden its energy partnership with Indonesia through liquefied natural gas (LNG) and renewable energy. Both nations plan to explore deeper cooperation on natural gas and conduct feasibility studies for a cross-border power grid connection.