Jakarta, July 25, 2024—The shift from fossil energy to renewable energy, or energy transition, will affect people’s lives in Indonesia. To mitigate the impact of the energy transition, the Institute for Essential Services Reform (IESR) emphasizes the importance of clear definitions and indicators of just energy transition appropriate to the Indonesian context. The clarity of the concept and scope of this just energy transition will minimize the social, economic, and technological risks of the energy transition process.
IESR defines just energy transition as the process of transitioning from a carbon-intensive socio-economic system to a low-carbon socio-economic system that aims to a) overcome existing economic, social, energy, and environmental problems, b) mitigate problems that could potentially arise as a result of the transition, and c) encourage a low-carbon system that is beneficial and not significantly detrimental to the parties concerned, through a multisectoral and multi-stakeholder approach at various levels.
Wira A. Swadana, Program Manager of Green Economy, IESR, revealed that three approaches, economic transformation, socio-political transformation, and environmental preservation, can be used to achieve the goals of the just transition.
“In economic transformation, for example, four main components need to be included: poverty alleviation, sustainable economic progress, green jobs, and economic resilience. Each component requires relevant indicators. For example, for the sustainable economic progress component, the indicators can be Gross Domestic Product (GDP), investment growth, gross national income per capita, renewable energy mix, and the proportion of the middle class,” said Wira at the Just Transition Dialogue II event: Aligning Civil Society’s Views and Intervention Strategies in Realizing a Just Energy Transition in Indonesia held on Thursday (25/7/2024).
Then, Wira stated that socio-political transformation is needed to support policies and regulations that encourage just transition. This transformation component includes human development and community inclusiveness. In addition, environmental preservation must be a top priority in every step of the energy transition, including biodiversity protection, sustainable natural resource management, and carbon emission reduction.
“With the clarity of the definition and scope of the Just transition, it is hoped that Indonesia will have a reference for planning and implementing an just transition according to the Indonesian context. Of course, this requires strong commitment and collaboration from all parties so that Indonesia can succeed in an just transition that reduces emissions and creates a better and sustainable future for all,” said Wira.
Royanto Purba, General Chairperson of the Blue Collar Trade Union Forum (FSP), Indonesian Workers Union, emphasized the importance of mitigating the negative impacts of job losses in the fossil energy sector and implementing the just energy transition. This mitigation can be done by developing training and skills programs, providing safety nets for affected workers, increasing social dialogue, and involving workers and communities in the process.
“In realizing this just energy transition, policy coherence, and harmonization are needed, as well as establishing a tripartite council for just energy transition between the government, employers, and labor. We have NDC (Nationally Determined Contribution), with various emission reduction targets that can impact reducing the number of jobs (in fossil energy, ed). Labor unions must be informed of this to anticipate the impact. For this reason, there needs to be a clear labor roadmap to provide direction for workers facing the energy transition,” Royanto added.
