Barges Unable to Sail, Indonesian Coal Stocks Piling Up!
Drought and falling water levels in several major rivers in Kalimantan have begun to disrupt coal transportation activities. This condition prevents barges from operating optimally, leading to the potential accumulation of coal stocks in mining areas and port stockpiles.
The Indonesian Coal Mining Association (APBI) stated that the decline in river water levels is occurring across several regions in Kalimantan due to dry season conditions. These disruptions are starting to affect coal transport via river routes.
APBI Executive Director Gita Mahyarani noted that in several areas, increasingly shallow river conditions are limiting the draft of barges. Consequently, the amount of coal that can be transported in a single trip is not maximised.
“In general, drought and the decline in river water levels are occurring in several regions of Kalimantan and are beginning to affect coal transportation activities,” Gita told CNBC Indonesia on Friday (4/6/2026).
She explained that the draft limitations prevent barges from carrying coal at full capacity. This situation could ultimately hinder the distribution of coal from mining regions to ports.
“In several other river areas, the drop in water levels can also limit barge drafts, meaning loads cannot be maximised,” she said.
According to Gita, the disruption to transportation activities has the potential to increase coal stocks temporarily. Coal that cannot be shipped immediately may remain stuck at mining sites or port stockpiles.
“This condition has the potential to increase temporary stocks in both mining areas and port stockpiles,” she added.
Nevertheless, APBI maintains that domestic logistics conditions are not the sole factor determining coal price movements. The commodity’s price remains primarily influenced by supply and demand dynamics in the global market.
“Coal price movements are influenced by various factors, especially global supply and demand dynamics. Logistics conditions in Indonesia may be one of the factors affecting market sentiment, but it is not the only determining factor for price increases,” Gita concluded.