Report

In coal-producing towns, coal shapes not only formal employment but also a vast web of informal and semi-formal livelihoods. This report examines how coal-driven economies function beyond the mines in three locations: Sangatta (East Kutai), Tanjung Redeb (Berau), and Rawas Ilir (Musi Rawas Utara).

Through qualitative research, the study maps how labour, income, and vulnerability are distributed across coal-dependent local economies. The coal mining supply chain is categorised into four tiers: 1) Tier 1 comprises core mining companies with formal employment, 2) Tier 2 includes contractors and direct suppliers, 3) Tier 3 consists of supporting businesses and service providers, and 4) Tier 4 encompasses the peripheral and informal economy: small traders, service providers, transport workers, and producers whose livelihoods depend indirectly on coal workers’ consumption.

The findings reveal that coal-dependent workers and small business owners are largely unprepared for potential mine closures, and that just energy transition policies risk overlooking the majority of informal workers. The report calls for unions to expand their reach beyond Tier 1 workers, engage with informal and subcontracted labour, strengthen advocacy for universal social protection, and participate early in local just transition planning.