The Department of Energy (DOE) has delayed the competitive auction for the country’s largest coal deposit on Semirara Island to as far as November, seeking to overhaul contract terms to channel the vast majority of output toward domestic power generation and secure a larger government royalty share.

Energy Secretary Sharon Garin told reporters that the tender for the Antique coal block—originally targeted for September—will be pushed back by at least two months to grant regulators time to revise the terms of reference.

The DOE is currently coordinating with the Department of Finance, the Department of Economy, Planning, and Development, and the Department of Environment and Natural Resources to finalize new rules governing revenue division and domestic delivery mandates.

“Right now, about 80 percent of it is exported—we want to flip that around,” Garin said. “We also need to define the deliverables, work out the government's revenue share, and address other similar details.”

Under the envisioned framework, the government aims to reserve roughly 80 percent to 90 percent of the coal block’s output for local power plants, insulating the domestic electricity supply from external market volatility and changing export rules in regional supply markets like Indonesia.

Garin admitted that the timeline revision originated within the agency as officials refine the regulatory treatment for brownfield energy projects. 


“I postponed it because we need to really study properly how to treat the greenfield coal bidding,” she said, referring to the need to balance existing operational infrastructure with open-market competition.

Despite the postponement, the DOE expects minimal disruption to the broader power sector, noting that domestic supply chains are equipped to absorb the transition period.

“I don’t believe there will be any major disruption if that happens,” Garin said. “That’s why we’re reviewing the terms right now because we want a larger local use of Semirara.”

The department also plans to leverage the proven commercial viability and low geological risk of the Semirara block to negotiate higher financial returns for the state.

“I think the government can ask for a share that would yield greater benefits, especially since those collections go back to the industry or the general public,” Garin added.

The upcoming tender has already prompted significant adjustments on the ground. Longtime operator Semirara Mining and Power Corp. recently reduced its coal production target by more than one-third and laid off hundreds of workers as it realigns operations ahead of the auction.

Despite the restructuring and ongoing legal clarifications regarding asset data disclosure, the energy department continues to welcome participation from the Consunji-led miner, citing its decades of technical experience and existing operational footings on the island.