Indonesia is leading Southeast Asia in coal mine expansion, with 31 million tons per annum (Mtpa) of new coal mining projects currently under development, according to a new report by Global Energy Monitor (GEM).

Of the 31 Mtpa, 15 Mtpa is already under construction, while 16 Mtpa remains in the planning stage. Nearly 94 percent of these projects aim to produce thermal coal for domestic power generation and export markets. Indonesia also contributes, along with Pakistan, to over half of the 135 Mtpa in coal mine capacity planned across 12 Asian countries (excluding China).

GEM’s report, “Still Digging 2025: Tracking Global Coal Mine Proposals”, warns that this coal expansion threatens to significantly worsen methane emissions and intensify the climate crisis. More than 40 additional coal projects in Indonesia are still in early stages, with unclear capacity estimates. Meanwhile, the government is exploring domestic reserves of metallurgical (coking) coal to reduce dependency on imports from Russia, Australia, and China.

“Indonesia’s coal sector faces economic risks and the threat of becoming a stranded asset,” Dorothy Mei, Project Manager at GEM, said as quoted in a statement on Monday, August 4, 2025. “This was evident in early 2025 when Indonesia’s coal exports dropped to their lowest level in three years due to surging domestic production in China and India, which together absorbed nearly two-thirds of Indonesian coal exports in 2023.”

Globally, there are 2,270 Mtpa of coal projects under development across 30 countries. Indonesia ranks 8th in the world for proposed coal mine capacity, far behind China, which leads with 1,350 Mtpa.

If all proposed coal projects worldwide proceed, they could release 15.7 million tons of methane annually − equivalent to 1.3 billion tons of CO₂e − surpassing Japan’s total annual emissions in 2022. This would push global greenhouse gas emissions up by 6 billion tons of CO₂e, on par with the United States, the world’s second-largest polluter.

Of the 30 countries developing new coal projects, 21 − including Indonesia − are signatories of the Global Methane Pledge. However, few have presented concrete methane mitigation plans.

“If countries are serious about meeting their climate targets, the solution is not unclear mitigation measures but halting new coal mine development altogether,” Tiffany Means, Senior Researcher at GEM, said. “The most effective strategy is simple: leave the coal in the ground.”

Wicaksono Gitawan, Policy Strategist at CERAH, criticized Indonesia’s coal expansion as incompatible with its energy transition and Paris Agreement commitments. “Rather than expanding coal, the government should focus on increasing renewable energy capacity and phasing out excessive coal use,” he said.

President Prabowo Subianto recently pledged during a visit to Brazil that Indonesia is prepared to use 100 percent renewable energy within the next ten years.