Jakarta — The coal sector is one of the main contributors to greenhouse gas (GHG) emissions, both from upstream mining activities and from coal combustion in the energy sector. At the upstream level, GHG emissions primarily come from mining operations, including fossil fuel combustion and fugitive methane emissions from coal mines.
Unfortunately, public disclosure of emissions data in Indonesia’s coal mining sector remains very limited. Yet, transparency on GHG emissions in this sector is key to overseeing energy-sector emissions-reduction targets within the framework of a just energy transition.
This issue became the main topic of discussion in a focused discussion held by Publish What You Pay (PWYP) Indonesia in the Menteng Raya area, Central Jakarta, on February 19, 2026. The discussion, titled “Transparency in GHG Emissions in Indonesia’s Coal Sector through the 2023 EITI Standard,” featured representatives from the EITI International Secretariat, the Center for Research and Development of Mineral and Coal Technology (Puslitbang Tekmira) under the Ministry of Energy and Mineral Resources (ESDM), and the energy research institution EMBER as speakers.
This event was also part of PWYP Indonesia’s in-depth research on transparency in GHG emissions in the coal sector. The discussion began with an overview of the research findings, followed by a discussion session with the speakers.
Muhammad Adzkia Farirahman—or commonly known as Azil—presented several points from the draft research report on behalf of the writing team.
“Indonesia is the world’s third-largest coal producer and has been an EITI implementing country since 2013. Therefore, this standard update is relevant to strengthening transparency practices in the extractive sector,” he said.
Azil explained that the energy sector contributes around 43 percent of total national emissions, with about 51 percent of CO₂ emissions coming from coal combustion in power plants (PLTU). On the other hand, coal remains the main pillar of national energy security until 2030.
“Current production and consumption trends indicate that this sector will still contribute significantly to GHG emissions in the coming decades,” he added.
In addition to Azil, this research was also written by Mouna Wasef, Aulia Sabrini Saragih, and Astrid Meliala. In general, the research affirms that increasing transparency in GHG emissions in the coal sector is a strategic step toward more planned decarbonization. The 2023 EITI Standard is seen as an entry point for strengthening transparency practices, provided it is supported by joint commitments among the government, industry, and other stakeholders.
The high GHG emissions from the coal sector are directly proportional to Indonesia’s dependence on this commodity, both in electricity supply and as a source of state revenue. Currently, the domestic energy sector is still dominated by coal, which contributes about two-thirds of national electricity production.
EITI International representative Sarah Hayton stated that this condition makes emissions data reporting an important instrument in supporting national energy transition planning. Within the framework of the Extractive Industries Transparency Initiative (EITI), Sarah explained, requirement 3.4 encourages companies to disclose GHG emissions in accordance with internationally recognized disclosure standards. Currently, this provision is still in the form of encouragement (encouraged) and has not become mandatory in the validation process.
However, there is a tendency that this encouragement could evolve into a formal obligation or expectation in the future, in line with the EITI standard revision process.
“Emissions reporting is not just an administrative obligation, but also a strategic instrument to support national climate policies, open access to financing, and enhance the competitiveness of Indonesia’s extractive sector in the energy transition era,” she said.
Meanwhile, Nurhadi from Puslitbang Tekmira under the Ministry of ESDM presented the government’s efforts to improve governance of the emissions data management information system in the coal sector.
“This information system will also become material in the national GHG emissions management inventory report. In the initial stage, data collection is still done manually, but in the future, it will be integrated into the existing system, namely Minerba One,” he explained.
On the other hand, Dody Setiawan, a researcher at EMBER, assessed that Indonesia’s dependence on coal revenue carries significant risks, especially amid global energy policy changes. Indonesia’s coal export destination countries, such as China and India, are currently accelerating the development of renewable energy. Therefore, according to Dody, transparency and emissions reporting are important for Indonesia to fulfill its commitments under the Paris Agreement.
In the context of the mining industry, Dody explained that the largest share of emissions falls under Scope 3. “This is because coal is burned in power plants or in industries like steel. Those emissions fall under Scope 3 for coal mining companies,” he said.In addition, methane emissions from coal mines are a fairly significant source. Methane gas forms naturally during coal formation. When mining occurs, and the coal seam structure is exposed, this methane gas is released into the atmosphere.
Nevertheless, according to Dody, emissions from coal mines have not been fully included in Indonesia’s GHG emissions inventory based on calculations conducted by his side. Yet, with a coal production capacity of up to 20 million tons per year, the potential for emissions is quite high. The larger the coal production, the greater the contribution to emissions. However, to date, Indonesia’s high coal production has not been accompanied by adequate instruments for transparency in GHG emissions data.
Author: Ariyansyah N Kiliu
Reviewer: Mouna Wasef