Indonesia Reassures Philippines on Steady Coal Supply Amid Energy Crisis

MANILA, Philippines — The government has secured Indonesia’s commitment to maintain a steady coal supply as the Philippines grapples with the global oil crisis and Southeast Asia’s highest electricity rates. During a series of high-level meetings in Jakarta, the Philippine delegation led by Energy Secretary Sharon Garin urged Indonesian officials to honor existing coal supply contracts between the two countries. The discussions came amid Indonesia’s new export governance framework for coal and other strategic natural resources, as the Philippines sought greater clarity and assurances on future supply. “We asked them to avoid any changes (in long-term contracts). If there are any changes, we hope they can lower the price instead. But they assured us (that the current arrangements) will be maintained,” Garin said in a chance interview yesterday. With one of the most coal-dependent power grids in Southeast Asia, the Philippines remains heavily reliant on coal-fired generation to meet its electricity needs. Coal currently accounts for around 60 percent of the country’s energy mix, according to the Department of Energy. DOE data also showed that about 95 percent of the Philippines’ coal supply is imported. Of these imports, Indonesia supplies 99 percent. Garin said the government offered to take a bigger role in importation, expressing its willingness to participate in procurement arrangements with Indonesia. “So we explored some options, and they’ll issue some guidelines in two weeks,” the energy chief said. As the energy emergency drives up oil and natural gas prices, the Philippines has ramped up the dispatch of coal-fired power plants to help cushion the impact on electricity rates. Beyond preventing sharp increases in power prices, Garin said Indonesia’s assurances are crucial to strengthening the country’s energy security. “This commitment from Indonesia strengthens our efforts to keep our energy supply secure: helping hospitals care for patients, schools stay open, businesses create jobs and families keep the lights on at home,” Garin said. Aside from coal, the Philippines and Indonesia also discussed opportunities to expand cooperation in liquefied natural gas (LNG) and renewable energy. In particular, the Philippines expressed interest in small-scale LNG projects that could support off-grid areas.