Jakarta – Publish What You Pay (PWYP) Indonesia released the results of a study on coal-sector governance, conducted over approximately one year, at a public discussion in Jakarta on November 27, 2025. The event, themed around reorganizing the coal sector within a just energy transition framework, served as a forum for stakeholders to discuss challenges and directions for reforming coal policies in Indonesia amid global commitments to the energy transition.
During the occasion, PWYP Indonesia launched four study reports that address strategic issues in coal governance from various perspectives. The studies examine the dynamics of business actors amid the energy transition, the importance of transparency in setting production quotas, the need for production controls aligned with climate commitments, and the urgency of a moratorium on coal-mining permits to ensure safety and environmental sustainability. These four reports were prepared as part of efforts to encourage coal policy reforms aligned with the principles of social justice, environmental protection, and economic sustainability.
Present as respondents to the dissemination of these reports were Senior Planner Expert from the Directorate of Energy Resources, Minerals, and Mining at the National Development Planning Agency (Bappenas), Nur Laila Widyastuti, Executive Director of the Indonesian Coal Mining Association (APBI), Gita Mahrayani, and Head of the Just Energy Transition Partnership (JETP) Secretariat, Paul Butarbutar. In addition, the event was attended by representatives from ministries and institutions, mining companies, and civil society organizations focused on natural resource governance and the energy transition.
“The results of this study are the outcome of collaborative work across stakeholders aimed at providing concrete recommendations for improving the governance of Indonesia’s coal sector within a just energy transition framework. This study not only highlights upstream issues, such as production control and law enforcement, but also encourages coal business actors to shift their perspective and begin preparing long-term strategies to transition their business models to greener, more sustainable sectors. The issues raised in these reports are increasingly crucial and require serious follow-up from the government,” said PWYP Indonesia National Coordinator Aryanto Nugroho.
The four reports were prepared in different contexts and addressed different problems, yet they are interconnected. One of them emphasizes the importance of coal industry actors viewing the energy transition not merely as a threat but as an opportunity to sustain their businesses. Global energy policy shifts toward renewable energy, economic pressures from dependence on fossil fuels, and government policies are key factors driving the need for business transition. In this context, PWYP Indonesia’s study emphasizes the importance of strengthening post-mining economies, providing incentives and transition financing schemes, enhancing collaboration and institutional capacity, and improving governance and social accountability.
Another study highlights the lack of transparency in setting coal production quotas, a persistent weakness in the sector’s governance. The annual production quota determination process is not yet providing adequate information on the calculation basis, criteria, or procedures used. Yet, production quotas play a strategic role in managing coal extraction rates and ensuring the achievement of national decarbonization targets and energy policies, including the National Energy General Plan. Without transparency, production controls risk not aligning with climate commitments and energy justice principles.
In addition to transparency considerations, overall control of coal production is a key focus of PWYP Indonesia’s study. Controls must be designed in alignment with Indonesia’s commitments to address the climate crisis, including Net Zero Emission targets, while also meeting the needs of a socially, ecologically, and economically just energy transition. Production controls are also seen as a strategic step to mitigate environmental impacts from mining activities that have long burdened ecosystems and surrounding communities. In the long term, this study recommends a gradual reduction in production targets through revisions to national energy policies and by halting coal mine expansions.
The final issue raised is the urgency of a moratorium on coal mining permits. This study stems from the reality that the rate of opening and expanding coal mines has exceeded the environmental carrying and supporting capacity in many regions. Amid Indonesia’s increasingly ambitious climate targets, a moratorium on new permits is viewed as an essential step to prevent broader environmental damage and ensure community safety. Such a moratorium should be followed by comprehensive audits and evaluations of existing permits, supported by clear sanctions and legal implications to ensure binding effect and deterrence. Consistent national coal production restrictions, aligned with national energy policy mandates, are also an integral part of efforts to reorganize the coal sector toward a just energy transition.