The planned auction for the Semirara coal mine will be moved to either August or September this year to update bidding terms in response to policy changes in Indonesia.
Indonesia has moved to improve regulations on coal exports, according to the Department of Energy (DOE). Energy Secretary Sharon S. Garin said this development in Indonesia may have an impact on the planned coal auction.
‘The Semirara auction will be impacted. It’s delayed a bit because now we
have to rethink about these changes in Indonesia. Semirara actually exports the majority of it coal.
There are things that we can put in the terms of reference so we maximize our utilization of indigenous coal. I think we still need a few more weeks to finalize. We want this finished as soon as possible,’ she said.
The bidding process for coal development and production areas, including the controversial blocks on Semirara Island, is expected to resume soon. Consunji-led Semirara Mining and Power Corp. (SMPC) currently holds coal operating contract (COC) No. 5, which is among the coal blocks on Semirara Island that will be tendered. The COC is valid until July 14, 2027.
‘If the schedule is July (or) August then probably it will be moved to August (or) September. Maybe a one-month delay…There are things that we can put in terms of reference so we maximize our utilization of indigenous coal,’ Garin added.
The DOE chief recently led a Philippine delegation in a series of high-level meetings in Jakarta, Indonesia to secure assurances on coal supply, strengthen bilateral energy cooperation, and seek ‘greater clarity’ on Indonesia’s new export governance framework for coal and other strategic natural resource commodities.
The delegation included officials from the DOE, and the Philippine Embassy in Jakarta. Separate meetings were held with Indonesia’s Coordinating Ministry for Economic Affairs (CMEA), led by Coordinating Minister Airlangga Hartarto; the Ministry of Energy and Mineral Resources (MEMR), with Vice Minister Yuliot Tanjung in attendance; and PT Danantara Sumberdaya Indonesia (PT DSI).
During the meetings with MEMR and CMEA, the Philippine delegation underscored Indonesia’s role as a strategic energy partner and the Philippines’s principal source of imported coal. The delegation emphasized coal’s continuing role in supporting the country’s power sector and sought regulatory clarity on Indonesia’s export framework to help safeguard power supply stability, affordability, and existing commercial arrangements.
Coordinating Minister Hartarto and Vice Minister Tanjung confirmed the Indonesian government’s initiative in improving regulation on coal exports which is intended to enhance transparency and improve traceability. PT DSI is currently at the forefront of this initiative and hopes to have the draft regulation released soonest.
Nonetheless, both officials recognized the importance of ensuring stable supply of coal to its partner economies who rely heavily on coal for power generation and other industrial uses and emphasized that the recent development does not intend to disrupt supply but improve transparency in coal transactions.