Jakarta – Publish What You Pay (PWYP) Indonesia held a focused discussion titled “Questioning the Transparency of Coal Production Quota Mechanisms to Align with Commitments to Openness and Energy Transition” in Central Jakarta on August 8, 2025. The discussion was part of PWYP Indonesia’s study on the transparency of coal production quotas, aimed at understanding policymakers’ perspectives on the quota-setting process.
Mouna Wasef, Head of Research and Advocacy at PWYP Indonesia, emphasized the importance of understanding the quota-setting mechanism to control coal production in Indonesia. “Coal production increases every year. In 2024, it reached a record high of 800 million tons. How is the quota determined? The process must align with Indonesia’s energy transition commitments,” she said.
Speakers included Catur Kurniadi, Coordinator of Governance at the Ministry of Energy and Mineral Resources’ Data Center and EITI Indonesia Secretariat; Gita Mahyarani, Executive Director of the Indonesian Coal Mining Association (APBI); Indra Gunawan, Expert Advisor to the National Strategy for Corruption Prevention (Stranas PK); and Ferdian Yazid, Manager of the Natural Resource Governance Department at Transparency International Indonesia (TII).
Catur, the first speaker, explained that the implementation of the Extractive Industries Transparency Initiative (EITI) for production data is not yet fully met. Production data is still limited to the company level and lacks detail on volume and value at the project level.
“With 800 million tons produced in 2024, coal reserves could be depleted in less than 50 years. The government needs to pay attention, as coal has been a key source of revenue. With the energy transition, will extraction accelerate? Especially with high global demand,” he said.
From an industry perspective, Gita Mahyarani emphasized that the government has full authority over production quotas, although companies are responsible for meeting them. In the context of quota regulation, reverting the Work Plan and Budget (RKAB) to a one-year cycle could serve as a stricter control mechanism.
“One aspect evaluated in the RKAB is compliance with reclamation guarantees. This determines whether the RKAB is approved, tightening oversight so companies can’t manipulate quotas. This is a good step, as it allows the government to assess which of the 880 mining permits are compliant holistically,” Gita said.
The shift to a one-year RKAB cycle, previously three years, is expected to support quota-setting that is not only transparent but also beneficial for companies and aligned with reserve levels. “The government sets quotas. We must consider supply and demand, not just domestically but also in competition with other coal-producing countries, ensuring fair policies for all coal industry players,” she added.
On transparency, Yazid emphasized its importance in determining annual production quotas, including the RKAB. He noted that the government’s yearly quota-setting is a vulnerable point. If not based on reserves or real data, it risks becoming a quota-sharing game.
He cited cases of quota misuse, such as “flying documents” in nickel mining in Southeast Sulawesi. According to Yazid, transparency in documents like the RKAB and reclamation guarantees can reduce corruption risks and promote accountability among officials. “Transparency reduces information asymmetry, prevents poor decisions and policies, and improves governance quality,” he explained.
Writer: Ariyansah NK
Reviewer: Mouna Wasef