While the country prepares for any major changes in coal exports from Indonesia, its long-standing supplier, the long-awaited auction of the Semirara coal block will be pushed back to a later date.

The Department of Energy (DOE) confirmed that it needs to fine-tune the terms of reference (TOR) for the competitive bidding covering the 18,000-hectare (ha) coal block in Antique province, as it seeks to maximize the use of its output for the domestic market.

The auction is expected to resume sometime this quarter, around August to September, according to Energy Secretary Sharon Garin.

Given the country’s heavy reliance on Indonesian coal, any tightening of coal exports from the neighboring country could affect the national power mix.

The DOE chief said the upcoming coal auction will change how Semirara sells its output, with the revised TOR prioritizing domestic sales over exports.

During the first quarter of 2026, Consunji-led Semirara Mining and Power Corp. (SMPC), the island’s sole coal operator, recorded lower coal shipments. From total production of 4.7 million metric tons (MMT), the company shipped only 2.5 MMT due to weaker demand.

According to Garin, prioritizing the domestic market would help reduce the country’s reliance on Indonesian coal imports. She said the DOE is targeting an increase in the share of Semirara coal used locally to about 60 to 70 percent, subject to the final decision of energy officials.

“[Our coal] is imported from other countries, while we’re exporting… There are technical reasons for that; that is because there are power plants that cannot accommodate the coal produced from Semirara,” she explained, noting that blending coal from different sources could make locally produced coal suitable for use.

Furthermore, Garin said domestic coal production should be utilized as much as possible to meet local demand.

“As much as possible, I would recommend all of it. But if not possible, then on the high side, 80 to 90 percent should be used in our power plants.”