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View all search resultsShaky regulations, finances stall coal miners’ transition to ‘green’ investment
Global coal demand reached an all-time high of 8.77 billion tonnes in 2024 and is projected to plateau through 2027.
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Fully loaded: Workers walk near a coal barge on Jan. 4, 2022, at a port in Palembang, South Sumatra. (Reuters)
I
ndonesia’s coal giants are accelerating their push into non-coal ventures as global demand falters under the twin pressures of a renewable energy boom and persistent oversupply, driving prices down. Yet uncertainty clouds the transition, with questions over how swiftly and successfully they can pivot from fossil fuels amid financial risks and lukewarm policy support.
Indika Energy, one of the country’s largest coal mining firms, reported a 28.8 percent increase in non-coal revenue in the first half of 2025, rising from 12 to 19 percent of total earnings. The company aims to derive half of its revenue from non-coal sectors by 2028, including electric vehicles, solar energy and gold mining.
However, these new ventures remain in the early stages.
“Our non-coal businesses are still in the development stage and will take time to generate significant cash flow,” Ricky Fernando, Indika Energy’s head of corporate communications, told The Jakarta Post on Wednesday.
“Stronger regulations and incentives are also necessary to fully support renewable energy growth.”
Indika allocated 95.4 percent of its capital expenditure, or US$51.8 million, in the first half of 2025 to non-coal segments. Its investments include the Awak Mas gold project, solar energy through the joint venture PT Empat Mitra Indika Tenaga Surya (EMITS) and electric vehicles under the brands ALVA, KALISTA and INVI.
As part of this shift, the company has divested coal assets, including PT Multi Tambangjaya Utama (MUTU), PT Mitrabahtera Segara Sejati Tbk (MBSS) and Petrosea, signaling a gradual move toward low-carbon business segments.
