Article created by WIME Indonesia

Indonesia’s coal industry has a long and significant history, beginning during the Dutch era in
However, its modern phase truly began in the 1980s, propelled by new investment and
mining laws introduced in 1967 (Friederich, 2017). The new regulatory framework paved the way
for experienced foreign mining companies to enter, leading to a substantial increase in coal
production, which reached a record high of 775.182 million tonnes in 2023.
This surge in production directly correlates with coal’s rise to become the largest source of
electricity generation in many countries – it currently supplies 35% of power generation globally,
according to a variety of sources, such as the International Energy Agency (IEA). Despite a
decade-long global shift towards cleaner energy sources and international commitments to
achieve net-zero emissions by 2050 under the Paris Agreement, coal still fuels a larger proportion
of the world’s power generation inventory than its next largest competitor (renewable energy at
32%). And coal demand is projected to continue rising in the coming years, particularly in
populous nations like India, Indonesia, and Vietnam. Coal prices have now stabilized at around
USD 90-110/ton depending on the coal grade, after a big price spike in 2022, due better supply
management and import controls. The continued reliance on coal stems from the critical need for
stable and affordable baseload

While the energy transition is crucial for sustainability and climate change mitigation, an
improperly planned or hurried transition can lead to significant social and economic challenges.
Shifting from fossil fuels to renewables often entails increased energy prices due to the high costs
associated with new power plant construction, grid integration and technology installation.
Although the cost curves for most renewable energy technologies have fallen drastically in the
past two decades, the technology is rapidly evolving, and the best technology choices for certain
situations are also evolving rapidly. Incorrect choices will inevitably lead to increased costs, and
these higher costs impact everyone, suppliers, offtakers and retail customers, and ultimately also
governments. In Indonesia, for instance, the target to shut down all coal-fired power plants (CFPP)
by 2040 presents a massive challenge. Given that coal accounts for 35% of the country’s energy
mix (and almost 80% of its electricity generation), this transition could displace an estimated
250,000 coal workers, according to a 2024 press release from the Ministry of Energy and Mineral
Resources. These statements are strengthened by a report from Ember Energy, a think tank
organization which conducted research on clean power expansion in Indonesia and found that in
coal-rich regions such as East Kalimantan, South Kalimantan, and South Sumatra, the coal
industry contributes up to 44% of regional GDP. Shutting down the biggest customer for
Indonesian coal will inevitably affect family incomes and employment levels, and increase regional
unemployment rates, challenging the existing social dynamics and putting pressure on social and
political stability.
Beyond these broad challenges, the energy transition poses unique and inevitable implications
for women.
Beyond these broad challenges, the energy transition poses unique and inevitable implications
for women. Often, women are at the forefront of household financial management, and in many
cases, they are also primary breadwinners. A spike in energy prices directly impacts family
welfare, placing an additional burden on women. Furthermore, women working in the coal industry
may face a disproportionate level of impact during workforce adjustments, often being the first to
be affected due to prevailing workplace norms and prejudices regarding family roles and
responsibilities.
Consider NAN, a mining engineer with four years of experience in coal mining, currently on
sabbatical leave to care for her children. She dreams of rejoining the workforce once her children
are school-aged, but faces a harsh reality: her future prospects in the coal sector are dim. With
only 8% of women working in Indonesia’s mining and energy sectors, and the industry undergoing
significant changes, opportunities are becoming increasingly scarce. Despite her conviction that
coal will remain crucial for iron and steel production, ensuring continued mining operations for
years to come, the question remains: how can women like NAN compete in this rapidly evolving
landscape and re-engage in an industry with a shrinking workforce against the backdrop of a
distorted view of the proper role of women in Indonesian society?

Since the coal industry is a massive industry and impacts many livelihoods, a possible solution
will involve multiple stakeholders including the government, NGOs, professionals, teachers and
researchers, journalists and influencers and industry.
The government bears the primary responsibility for ensuring a just energy transition
that considers both energy security and social welfare. This includes making affordability
analyses an integral part of policymaking, supporting the full diversity of income groups,
gender equality, and providing subsidies and other forms of assistance to low-income
communities, ensuring inclusive energy access across the whole of Indonesia.
The NGOs, alongside government, NGOs play an important role in raising awareness
about clean energy among communities through local discussion and capacity building,
promotion of green energy practices, proving concepts by undertaking small scale pilot
projects and advocating for sound, rational, and equitable policies.

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Professionals, teachers, and researchers, particularly those in managerial roles,
can serve as vital mentors for young workers in the mining and energy sector. Given the
small proportion of women in these industries, fostering strong support systems and
healthy connections among female colleagues is invaluable. Women frequently encounter
unique challenges, ranging from balancing work and family responsibilities, through
workplace harassment to navigating expectations that they must outperform male
counterparts in order to progress.
Journalists and influencers, have a vital role in telling the truth and spreading the
message, shorn of political bias, about – for example – unfair or unwise policies and
practices and their impacts on communities. As we go online to obtain more and more of
our knowledge and understanding of the world, influencers and bloggers have already
become more central to the diffusion of ideas than the ‘conventional’ media.
The industry, as investors, service providers and key workforce organizers, must
proactively and strategically respond to the challenges posed by the energy transition.
Companies and institutions can begin by providing training programs to upskill and
reskill employees with competencies relevant to emerging greener energy technologies.
The industry also has important communications and ESG roles in helping host
communities to understand and adapt to transition rather than fearing it.
One notable community organization dedicated to empowering women in the mining and energy
industry is Women in Mining and Energy (WIME). WIME offers programs designed to support
young female professionals in achieving and advancing their careers, such as the Female STEM
Graduate Mentorship Program. Launched in 2020, this program assists female graduates in
entering the workforce at both entry-level and senior positions. The latest batch, which graduated
in May 2025, successfully paired 25 mentees with experienced professionals from the mining and
energy sectors, including engineers, analysts, and human development specialists. Most
mentees join this program seeking guidance to boost their careers and build connections for future
collaborations.
NAN, a mentee in WIME’s Female STEM Graduate Mentorship Program, found her mentoring
sessions to be a journey of self-discovery. Discussions with her mentors illuminated current
mining conditions and her potential contributions. From a mentor’s perspective, mentees like
NAN, with their inherent strengths, growth mindset and persistence, possess the drive to
overcome challenges and achieve their aspirations. Most mentors come away from their
mentoring experience greatly inspired and re-energized by the contact with their mentees.
In conclusion, despite the anticipated decline in coal’s role in global electrification, the industry
undeniably retains a dominant and strategic position in the livelihoods of many, both in power
generation and in the steel industry. A successful energy transition hinges on a clear
governmental strategy and policy concerning the evolving role of all fossil fuels, especially coal.
Now, it is time for coal leaders and other stakeholders to take a lead in shaping a truly just
transition to a lower carbon world. This means not only securing continued energy access at
affordable prices, but more importantly investing in people, especially women, through training
and reskilling initiatives. These efforts will be instrumental in safeguarding economic livelihoods
and social stability during this pivotal energy shift, and are crucial to a stable and prosperous
future for Indonesia.

References
Friederich, Mike.C., & van Leuween, Theo. (2017). A review of the history of coal
exploration, discovery and production in Indonesia: The interplay of legal framework, coal
geology and exploration strategy. International Journal of Coal Geology, 176(56-73).
International Energy Agency. (2023). Coal Market Update: July 2023.
Setyawati, D., & Setiawan, D. (2024). Indonesia’s expansion of clean power can spur
growth and equality. EMBER.