UNIPA News (Jakarta). April 9, 2026. The conflict in the Middle East has influenced the rise in coal prices in Indonesia. Meanwhile, the Indonesian Coal Mining Association (APBI) predicts that coal demand from the Philippines will increase 40 million tons in 2026, from 2025 around 38, 5 million tons.
The current geopolitical situation is driving up the prices of crude oil and liquefied natural gas (LNG), This has caused several countries, including the Philippines, to rely on coal as their main energy source, said APBI Executive Director Gita Mahyarani.
On April 7, 2026, Miss Gita Mahyarani said that there is an opportunity for Indonesia to supply coal to a number of countries facing pressure on domestic energy needs, including the Philippines. Because Philippines electricity depends on coal from Indonesia.
The Philippines is seeking alternative energy sources to alleviate a supply crisis that has prompted the declaration of an energy emergency.
Philippines diverts Its electricity production comes from the Middle East. From gas to coal and intends to increase commodity imports from Indonesia.
Philippine Energy Minister Sharon Garin said, “If this step is successful, it could reduce the increase in electricity rates due to the conflict in the Middle East, because there are no restrictions on coal imports from Indonesia.
Indonesia is the main supplier of coal for the Philippines which supplies half of the electricity grid of neighboring countries in northern Sulawesi.
Coordinating Minister for Economic Affairs Airlangga Hartarto said President Prabowo Subianto is opening up the possibility of increasing coal production in line with rising commodity prices due to the war in the Middle East.
The volume of coal production has been increased, requested by Indonesian President Prabowo Subianto at the State Palace. The government will also implement additional export duties to increase state revenue from the windfall profit.
The amount of coal export tax will be reviewed by the export duty tax team, said Mr. Airlangga Hartarto.
Report by:
Deswita Refika,
Jakarta, Indonesia.
