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View all search resultsEl Niño chokes Indonesia’s coal exports as rivers run shallow
Citing data from the Shanghai Metals Market (SMM), Indonesia's coal exports totaled 36.10 million tonnes in August, down 23.34 percent year-on-year and 6.54 percent month-on-month, the lowest August level in five years.
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Coal is loaded onto barges at a jetty along the Kedang Kepala River in Senyiur village, East Kutai Regency, East Kalimantan. (Courtesy of/PT Bayan Reources)
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prolonged El Niño-driven dry spell is disrupting Indonesia’s coal shipments as rivers used to transport the export commodity run shallow. Analysts said producers may turn to alternative routes, including land transport or smaller vessels, but these options could drive up costs.
The Indonesian Coal Mining Association (APBI) has cautioned that an extended dry season could further disrupt shipments, with supply chains already under strain in key producing regions.
APBI Executive director Gita Mahyarani said the impact of the prolonged dry spell is not uniform across the country but is becoming increasingly evident.
"It will certainly have an impact, though not in every region, and is already occurring, particularly in Central Kalimantan," she told The Jakarta Post on Monday.
A central concern is the shallowing of major waterways used to transport coal. Asked about how the declining depth of the Barito and Mahakam rivers affects existing export contracts, Gita said the disruption is already tangible, though its scale varies by company.
Indonesia's seaborne coal exports fell sharply in August, extending a three-month decline as prolonged dry weather hampers shipments from mine sites to export terminals.
Citing data from the Shanghai Metals Market (SMM), exports totaled 36.10 million tonnes in August, down 23.34 percent year-on-year (yoy) and 6.54 percent month-on-month (mom), the lowest August level in five years.
