Malaysia seeks clarity from Indonesia on coal supply after output cut

Malaysia has raised concerns with Indonesia over potential coal supply disruptions after Jakarta announced plans to cut production this year, Bernama reported.

Deputy Prime Minister Datuk Amar Fadillah Yusof said the issue was discussed in separate meetings with Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia and the President’s Special Envoy for Energy and Climate Hashim Djojohadikusumo on Wednesday.

Indonesia currently supplies coal to Tenaga Nasional Bhd, Malaysia’s state utility. Fadillah said Kuala Lumpur is seeking clarity on Indonesia’s policy and strategic changes to ensure that supplies to Malaysia will not be affected.

Read also: China could lift coal output this year amid Indonesian curbs

Indonesia, the world’s largest thermal coal exporter, plans to reduce coal production to about 600 million tonnes this year, down 24 percent from 790 million tonnes last year. The policy aims to support prices and safeguard long term reserves.

Fadillah, who also serves as Malaysia’s Energy Transition and Water Transformation Minister, is on a three day visit to Jakarta to strengthen bilateral energy cooperation.

Discussions also covered the ASEAN Power Grid initiative, a proposed undersea cable linking Sarawak and Johor, and the extension of a memorandum of understanding on energy cooperation between the two countries.

Malaysia, he added, is prepared to deepen energy collaboration with Indonesia if requested. Sarawak currently exports 100 megawatts of electricity to West Kalimantan.

Editing by Alexander Ginting