Indonesia sees higher coal demand from Philippines in 2026

Demand for coal from the Philippines is expected to rise to around 40 million tonnes in 2026, up from about 38.5 million tonnes last year, the Indonesian Coal Mining Association (ICMA) said.

ICMA Executive Director Gita Mahyarani said rising oil and LNG prices amid geopolitical tensions are prompting some countries to rely more on coal.

She said the increase in demand from the Philippines presents export opportunities, although benefits will depend on production limits and global market dynamics.

Read also: Philippines seeks steady Indonesian coal supply amid energy price risks

Output constraints under the 2026 work plan and budget are expected to cap production at around 600 million tonnes, potentially limiting supply growth in the near term.

Export performance will continue to be influenced by demand from key markets such as China and India, she added.

The Philippines has been seeking alternative energy sources as supply risks linked to Middle East tensions disrupt oil markets, while also securing coal supply assurances from Indonesia.

Editing by Alexander Ginting