Kapuas River Runs Dry, Coal Producers Speak Out

Jakarta, CNBC Indonesia — The Indonesian Coal Mining Association (APBI) has spoken out about drought conditions affecting several major rivers in Kalimantan, caused by a prolonged dry season and the El Nino phenomenon. The situation has begun to affect coal transportation activities using barges.

APBI Executive Director Gita Maharyani said that, in general, drought and falling river water levels have occurred in several parts of Kalimantan and are starting to affect coal transport operations.

“In general, drought and falling river water levels have occurred in several parts of Kalimantan and are beginning to affect coal transport activities,” she told CNBC Indonesia, quoted on Monday (7 September 2026).

According to her, in several other river areas, the drop in water levels can also limit the draft — or cargo depth — of barges. As a result, barge carrying capacity cannot be maximised.

“In several other river areas, the drop in water levels can also limit barge drafts, so cargo cannot be maximised,” she said.

She went on to say that the situation has the potential to increase coal stocks temporarily, both at mining areas and at port stockpiles.

“This condition has the potential to increase temporary stocks at mining areas and port stockpiles,” she said.

Nevertheless, regarding the impact on coal prices, APBI believes price movements are still influenced by a variety of factors, particularly demand and supply dynamics in the global market.

According to APBI, coal logistics disruptions in Indonesia can indeed be one factor affecting market sentiment. However, the situation is not the only factor determining the direction of coal price increases.

“Logistics conditions in Indonesia can be one of the factors influencing market sentiment, but they are not the sole determinant of rising prices,” she said.