Key facts
- Low water levels on the Barito River in central Kalimantan are disrupting Indonesian coal flows.
- Some coal producers have declared force majeure on shipments.
- El Niño is expected to prolong dry conditions, potentially worsening the river's navigability.
- Mining operations are also facing challenges with fuel deliveries.
- Barging costs have increased significantly due to reduced barge capacity.
Supply disruptions are mounting in Indonesia's coal sector due to critically low water levels on the Barito River in central Kalimantan. Several mining companies have declared force majeure on shipments as parts of the river have become unnavigable, hindering the movement of coal from mines to export terminals.
The situation is compounded by the strong El Niño phenomenon, which is forecast to persist into early 2027, threatening to prolong dry conditions and further restrict navigation on the Barito and other key waterways. This comes at a time when Indonesian coal production is already facing constraints from delays in output quota (RKAB) approvals.
Producers are also struggling with increased costs for fuel deliveries to mining operations, forcing reliance on more expensive inland transport. Standard barges that typically carry 7,500-10,000 tons are now limited to loading as little as 3,000-4,000 tons due to the reduced draft, effectively doubling barging costs in some cases. Central Kalimantan's coal production in 2025 was around 46.78 million tons, with a significant portion exported.