Coal is of considerable importance for Indonesia. Coal industries contribute about 3.6% of the Indonesian gross domestic product (GDP) (IESR, 2023). With plenty of coal reserves, Indonesia continues to be the leading producer and exporter of coal. Coal is also the largest source of Indonesian energy—about 30% of total source of Indonesian energy are from coal, followed by 28.9% from oil, 14.4% from natural gas, and 26.4% from renewable energy (IEA, n.d.). Indeed, it provides income both for the state and the communities.
Despite its importance, the government agreed to reduce the use of fossil fuels to advance its renewable energy and climate ambitions. The government plans to phase out coal use as part of its climate neutrality strategy from 2035 onward. Government of Indonesia reshapes its energy policy by enacting various regulations and developing policy papers, both of which create the legal and institutional framework for the country's energy transition.
While the energy transition provides economic and environmental benefit at regional and national level, coal workers and communities living in the vicinity of coal mining areas face immediate adverse economic and social effects. Employment problem is a most serious consequences of mine closure for coal workers and the communities. Women are particularly disadvantaged from employment lost due to coal mining closures. Coal mining closures may also directly affect the availability of basic services and infrastructures. The burden from such situation often falls mostly on women.
The interaction between coal transition with existing power asymmetries in societies leads to different ways of impact across different groups of communities. Hence, understandings on how coal mine closures affect communities, in particular women and other marginal groups, are key for ensuring a just transition for everyone.
The City of Sawahlunto is in many ways an ideal site for learning and implementing a just transition process. The closure of coal mining activities in the 2000s act as a shock which induce adjustment to the communities in Kota Sawahlunto.
Even though the closure of coal mining has occurred about 25 years ago, analyzing the cessation of PT Bukit Asam’s (PTBA's) mining activities offers valuable lessons on the socioeconomic impact of mine closures to communities, women, and other marginal groups from a real-life example of coal mining closure.
During and after the closure of PTBA coal mining activities, the government and the PTBA also have implemented programs and activities to help communities to face the impact of coal mining closures. Analysis on transition process, institutions, and policies will be utilized to explore to what extent the closure of PTBA coal mining implemented a just transition process and the opportunity to improve a just energy transition process in the future.
This study aims to derive lessons learned from the process of PTBA coal mining closure in Kota Sawahlunto, accounting for the differences in the experience of men and women and other marginal groups, for designing a better just transition strategies in the future in Kota Sawahlunto specifically, and in other region generally. The specific objectives are:
- To understand the impact of PTBA coal mining activities closure on the residents of Kota Sawahlunto, including on marginal communities, and strategies/programs to address/mitigate the impact
- To explore the socioeconomic development of communities toward a post-mining economy
- To understand the implementation of the just transition process during the closure and post-closure of PTBA coal mining activities
- To identify current socio-economic opportunities and challenges and existing strategies/programs to address these
- To propose future strategies for an effective, inclusive and sustainable energy transition
This study adopts a mixed of quantitative and qualitative approach complemented by literature and policy reviews.
Quantitative covers secondary data analysis and household survey using descriptive statistics to produce insightful graphs and tables for a comprehensive summary of various socioeconomic variables. It will assess the demographic profile, socioeconomic conditions, and needs of the local population to transition to a post-mining local economy.
Meanwhile, qualitative data and information are gathered through a) literature reviews on policy documents and previous studies on (just) energy transition and impact of coal mining closure, b) in-depth interview with key stakeholders, c) group discussion with community members, and d) verification workshop to obtain feedback of the research findings/analysis and strengthen future strategies for an effective, inclusive and sustainable energy transition analysis in the report.
