Union’s Statement Defending Energy Sovereignty, Strengthening Public Ownership, and Promoting a Just Energy Transition in Indonesia

Serikat Pekerja PT PLN Persero (SP PLN)
Serikat Pekerja PT PLN Nusantara Power (SPNP)
Persatuan Pegawai PT PLN Indonesia Power (PP-IP)
Public Services International (PSI)

STATEMENT

Defending Energy Sovereignty, Strengthening Public Ownership, and Promoting a Just Energy Transition in Indonesia

Opposing Privatization, Strengthening Public Financing, and Ensuring Climate Justice for Workers and the People

SP PLN – PP-IP – SPNP

I.     Background and General Position

Electricity is a basic necessity for society and the foundation of economic development, social life, and the well-being of the people. The provision of electricity is essential to the survival of many people. Therefore, its provision cannot be viewed solely as a business activity aimed at generating profit. The state is responsible for ensuring the availability of affordable, reliable, equitable, and sustainable electricity for all citizens, including those living in areas that are not commercially viable.

For Indonesia, the management of the electricity sector must be based on the mandate of Article 33 of the 1945 Constitution regarding state control over vital branches of production that are essential to the livelihood of the people, as well as the utilization of natural resources for the greatest possible prosperity of the people. This mandate must serve as the foundation for determining policy direction, forms of operation, financing, and electricity services.

On that basis, SP PLN, PP-IP, and SPNP emphasize that electricity must continue to be regarded as a public service and a strategic national sector. The state is obligated to maintain responsibility for and control over the planning, development, management, financing, and provision of electricity by strengthening PLN as a state-owned electric utility. State control must be reflected in the ability of to determine the direction of development and deliver services, rather than being limited to the company’s ownership status.

We believe that the liberalization, commercialization, and increasing reliance on private investment in the electricity sector must be seriously scrutinized. Such policies cannot be justified if they reduce public control, weaken the role of PLN, place a financial burden on the state and companies, drive up rates, or threaten job security and worker protection.

We do not reject investment and technological development. However, investment must serve as a means to fulfill the public interest and strengthen national capabilities. The need for capital or technology must not be used as an excuse to hand over control and management of the electricity sector to private capital interests.

Strengthening public ownership must also be accompanied by management that is transparent, accountable, and open to oversight by workers and the public. State-owned enterprises must provide quality services, respect workers’ rights, and use their resources for the benefit of the people.

Our guiding principle is: the energy transition must strengthen public ownership, not serve as a gateway to new privatization

II.    The Union’s Position on Privatization of the Electricity Sector

The  union rejects any form of privatization that results in a reduction of state control over the electricity sector. This rejection includes the divestiture of strategic assets, the separation of PLN’s functions and business activities—which weakens system integration—and excessive reliance on private electricity producers or Independent Power Producers (IPP).

We believe that privatization does not always take the form of a direct sale of state-owned shares or assets. Privatization can also occur gradually through market liberalization, the transfer of investments and power plant construction to the private sector, long-term contracts that restrict PLN’s flexibility, and the handing over of strategic electricity service functions to commercial interests.

Therefore, any assessment of privatization must consider who controls the assets, makes decisions, reaps the benefits, and bears the risks. State ownership may be formally maintained, while the state-owned enterprise’s ability to plan and develop the electricity system is actually increasingly constrained by contracts and the interests of other parties.

The unions’ stance and demands are as follows:

1.     Maintain public ownership and control. 

We reject the privatization of strategic assets, infrastructure, power plants, transmission, distribution, and electricity service functions that weaken state control. Assets built with public resources must continue to be used to ensure service delivery and the well-being of the people.

2.       Strengthening the role of PLN. 

Ensuring that PLN remains the state’s primary instrument in planning, building, operating, and developing the national electricity system. This role must be supported by adequate investment capacity, technological expertise, and a sufficient workforce.

3.     Rejecting liberalization that harms the public interest. 

We reject policies that treat electricity as merely a market commodity and prioritize investor profits over the needs of the community. Electricity service must not be determined solely by customers’ ability to pay or a region’s profit margins.

4.     Protecting jobs and workers’ rights. 

Ensuring that energy restructuring and the energy transition are not used as excuses to reduce the workforce, expand outsourcing, weaken job security, or eliminate statutory rights. Any changes that affect workers must be negotiated with unions before decisions are implemented.

5.       Strengthening democracy and public oversight. 

Ensure the involvement of unions, the public, and relevant stakeholders in the formulation of electricity policies. Such involvement must include access to information and the opportunity to influence decisions, not merely attending public briefings after policies have been finalized.

• Ensure that the RUPTL serves as an instrument to strengthen PLN and public ownership, not as a means to expand privatization of the electricity sector. Its implementation must be evaluated based on its impact on the state’s ability to control and develop the electricity system.
• Prioritize the development of renewable energy power plants through public investment and capacity building at PLN. The government must provide support so that PLN is able to build, operate, maintain, and master the technologies used.
• Ensure that the development of power plants, transmission, distribution, and energy storage is carried out in an integrated manner within PLN’s planning. Development must address the needs of the system and the public, and avoid investment decisions that solely pursue profits for specific projects.
• Conduct a transparent review of the IPP scheme, power purchase agreements (PPAs), take-or-pay obligations, and long-term financial risks. The review must clarify PLN’s payment obligations, risk allocation, and the impact on the company’s and the state’s finances, including when available electricity is not consumed as projected.
• Ensure that the development of electricity infrastructure provides economic benefits and creates decent jobs for Indonesian workers. These benefits must include the development of domestic industries, technology transfer, skills development, fair wages, workplace safety, and job security.
• Ensure that unions are involved in policy discussions and the implementation of the RUPTL, particularly regarding corporate restructuring, technological changes, and the future of work. This involvement must begin at the planning stage, when policy options can still be discussed and refined.

III. The Unions’ Position on the 2025–2034 RUPTL

The Electricity Supply Business Plan (RUPTL) is a strategic instrument that determines the direction of Indonesia’s electricity sector development over the next ten years. The decisions contained therein will affect infrastructure control, budget allocation, electricity service, and the future of employment.

The union recognizes the importance of developing renewable energy, building transmission networks, strengthening the national power system, and expanding access to electricity. However, we emphasize that the implementation of the RUPTL must continue to prioritize national interests and strengthen public ownership.

The 2025–2034 RUPTL outlines plans to add 69.5 GW of capacity, including energy storage. In its official statement, the Ministry of Energy and Mineral Resources noted that approximately 73 percent of power generation capacity is planned through partnerships with the private sector or Independent Power Producers (IPPs). This composition warrants serious attention as it has the potential to increase PLN’s dependence on private power producers and long-term power purchase agreements.

The scale of development needs must not overshadow discussions regarding ownership and financing options. The government must outline steps to expand PLN’s capacity to undertake construction projects on its own, and ensure that any public-private partnerships do not diminish state control or shift private-sector business risks onto state-owned enterprises.

The unions’ position and demands are as follows:

The RUPTL must serve as a tool for building a national electricity system that is strong, self-reliant, integrated, and oriented toward public service. Its success must be reflected in improved service, strengthened national capacity, and increased well-being for workers and the public.

V.    Strengthening Public Financing of the Electricity Sector

Unions believe that one of the issues driving privatization is the limited availability of public funding and the growing reliance of electricity infrastructure development on private capital. These limitations must be addressed by strengthening the state’s responsibility for financing.

Development in the electricity sector requires large, long-term investments. However, financing needs should not be used as an excuse to hand over the state’s responsibilities to market mechanisms and the interests of private investors. The state remains obligated to provide electricity, including in areas where service demand is high but business profits are limited.

We are advocating for a shift in the financing model for the electricity sector: from reliance on private investment toward strengthening public financing. The goal is to give the government and PLN the ability to build infrastructure based on the people’s needs, at a cost and with risks that are manageable.

Unions urge the government to:

1.     Increase public investment. 

          Strengthen the allocation of the State Budget (APBN), state capital injections (PMN), and government financing support for the development of electricity infrastructure. This support must be directed toward increasing public capacity and assets, accompanied by oversight of its use.

2.     Strengthen PLN’s  financial capacity. 

          Ensure that PLN has the investment capacity, access to long-term financing, and policy support needed to develop power generation, transmission, distribution, and renewable energy. Public service mandates must be accompanied by clear and timely funding so as not to undermine the company’s ability to carry out maintenance and construction.

3.     Developing equitable financing for the energy transition. 

          Optimize public financing sources and international climate finance while maintaining public control over strategic infrastructure. Transition financing must also include worker protections, job-related training, income guarantees, and support for affected communities.

4.     Evaluate private financing schemes. 

          Ensure that any partnership with an IPP does not impose long-term financial burdens, fiscal risks, or detrimental dependence on PLN. The evaluation must clarify the sharing of profits and risks, including any guarantees or liabilities borne by the government.

5.     Strengthen cross-border financing cooperation. 

          Advocate for access to international climate finance by prioritizing grants and utilizing concessional finance with fair terms. Funding must not rely on commercial loans that increase the debt burden, nor should it require privatization or the weakening of worker protections.

November 9–20, 2026, Antalya, Türkiye.

1. Irma Rahmawati, SPPLN, Cell/WA: +62 813-2114-8558
2. Nanda Pitasari, SPNP, Cell/WA: +62 821-3966-6689
3. Teguh Ronal Setiawan, Cell/WA: +62 821-1111-7842
4. Indah Budiarti, PSI, Cell/WA: +62 813-8041-6310

6.     Ensuring the affordability of electricity rates. 

          Ensuring that financing policies do not shift the costs of investment and the energy transition onto the public through unfair rate hikes. Protection must be provided primarily to low-income households and small businesses that depend on electricity to sustain their livelihoods.

Muhammad Abrar Ali

We affirm that public financing is a crucial instrument for carrying out a democratic and just energy transition. Its sources, conditions, use, and repayment obligations must be subject to public oversight. Public funds must strengthen public services and public ownership, not bear the risks of investments whose profits are reaped by the private sector.

V.    Trade Unions’ Position on Climate Chang and a Just Energy Transition

Unions recognize that climate change is a global challenge that requires concrete action and changes to the energy system. The electricity sector plays a crucial role in reducing greenhouse gas emissions and accelerating the development of clean energy.

However, the energy transition cannot be limited to simply switching power generation technologies from fossil fuels to renewable energy. The transition also involves governance, ownership, financing, labor relations, and the distribution of economic benefits. These choices will determine whether the changes bring improvements for the people or, conversely, widen inequality.

We reject an energy transition approach that prioritizes market interests, private investment, and corporate profits without ensuring the protection of workers and the public. Reducing emissions must go hand in hand with fulfilling the rights to decent work, energy services, and a healthy environment.

The principles of the energy transition advocated by unions are as follows.

1.     Public Pathway — Publicly-Owned Energy Transition

The energy transition must strengthen the role of the state and PLN in developing renewable energy, grid infrastructure, energy storage technology, and an integrated electricity system.

The “public pathway” places public ownership, state planning, and public investment at the foundation of the transition. The direction of development is determined by the need for public services, equitable distribution, emissions reduction, and the well-being of the people. Its implementation must be open to oversight and the involvement of workers and the public.

2.     Just Transition — No Worker Left Behind

Every technological change and energy transition must ensure the protection of jobs, income, social security, occupational safety and health, and workers’ collective rights.

The closure, reduction in operations, or repurposing of a power plant must be preceded by negotiations with labor unions and a protection plan that includes a budget, a timeline, and designated responsible parties. Workers must receive clarity regarding job continuity, placement, wages, length of service, and pension rights.

Protection must extend to permanent employees, contract workers, outsourced workers, and affected workers in the supply chain. Retraining should not mark the end of the company’s and the government’s responsibility; training must pave the way toward decent work and a decent income.

 

3.     Decent Work and Green Jobs — Decent Work in a Green Economy

The development of renewable energy must create decent, safe jobs that provide social protection and respect the freedom of association and the right to collective bargaining.

Jobs in the clean energy sector must meet good labor standards. The term “green jobs” does not justify low wages, precarious employment relationships, disregard for safety, or the suppression of unions. The development of the energy industry must simultaneously strengthen the skills and standing of Indonesian workers.

4.     Workers’ Participation — Trade Union Involvement

Unions must be involved from the planning and decision-making stages through to the implementation and monitoring of energy transition policies. Workers possess the knowledge and experience necessary to determine which changes can be implemented safely, reliably, and fairly.

This involvement must be realized through access to information, sufficient time to form opinions, and negotiations before decisions are finalized. Agreements on worker protection must be set forth in clear agreements whose implementation is enforceable.

5.     Climate Justice

The responsibilities and costs of the energy transition must be shared fairly. Workers, low-income individuals, and communities affected by climate change or changes to the energy system must not bear the heaviest burden.

Climate justice also includes protecting the families of workers and local economies that depend on energy-related activities. The reduction or cessation of such activities must be accompanied by support for people’s livelihoods, environmental restoration, and the development of economic activities that provide decent jobs.

At the international level, developed countries must fulfill their historical responsibilities through financial and technological support. Domestically, those with economic capacity who derive the greatest benefits from business activities must bear a commensurate share of the responsibility.

6.     Energy Democracy

Communities and workers must have a say in determining energy policy. Energy must be managed for the common good, with transparent and accountable decision-making.

Energy democracy demands transparency regarding development plans, contracts, financing, tariffs, and the impacts of projects. The rights of affected communities, including indigenous peoples, to their land, living space, and livelihoods must be respected. Renewable energy development must not repeat practices of eviction, land grabbing, or the disregard of community voices.

VI. Unions’ Position and Demands at COP31

COP31 — The 31st United Nations Climate  Change Conference
November 9-20 November 2026

Ahead of COP31, SP PLN, PP-IP, and SPNP emphasize that the global climate agenda must bring about a just energy transition workers and communities. The Indonesian government must champion these interests in its positions and negotiations.

COP31 must serve as a catalyst to reaffirm that the energy transition involves not only emissions reduction but also energy control, financing sources, benefit-sharing, and the protection of those affected. The climate agreement must allow Indonesia to strengthen public enterprises and meet development needs without sacrificing workers’ rights.

At the COP31 forum, we are presenting the following key demands:

1.     Public Ownership and Public Pathway

Ensuring that the energy transition does not become a new instrument of privatization. The state and state-owned electric utilities must be the primary actors in clean energy development.

Climate agreements and international cooperation must recognize the right of developing countries to choose energy development through public ownership and investment. Access to financing and technology must not be conditional on the divestment of assets, the liberalization of electricity markets, or the reduction of the role of public enterprises.

2.     Public Climate Finance

Promote increased public climate finance, grants, and soft loans to support the energy transition in developing countries.

Funding must be accessible to public companies and used to build power plants, transmission grids, energy storage facilities, and social protection programs. Funding commitments must be reported transparently, distinguishing between grants and loans, as well as between pledged funds and funds actually disbursed. Financing requirements must not increase debt dependency or undermine energy policy sovereignty.

3.     Workers’ Rights and Just Transition — Workers’ Rights and a Just Transition

Ensuring worker protection, the creation of decent jobs, reskilling, upskilling, and social security for affected workers.

Every transition program must include clear obligations regarding worker protection, along with a budget and oversight mechanisms. Protection includes job and income security, workplace safety, freedom of association, and the right to collective bargaining. Contract and outsourced workers must receive protection commensurate with the impacts they face

4.     Trade Union Participation

Recognize unions as partners in the planning and implementation of climate policy and the energy transition.

Recognition must be realized through participation in the formulation of national positions, program planning, the allocation of funds, and oversight of implementation. Union representation must respect the organization’s autonomy. Unions must have the opportunity to influence decisions and negotiate protections for their members.

5.     Climate Responsibility and Equity

Demand that developed countries fulfill their climate finance commitments and historical responsibilities, so that developing countries are not forced to finance the energy transition on their own.

Support must include equitable financing, technology transfer, and national capacity building. The transition must take into account development needs, equitable access to energy, and the economic capacity of each country. In Indonesia, burden-sharing must protect workers, low-income households, and affected communities.

6.     International Trade Union Solidarity — Solidaritas Serikat Pekerja Internasional

Strengthen solidarity and cooperation among trade unions across countries to advocate for a just energy transition, public ownership, and energy democracy.

This cooperation must be realized through the exchange of knowledge, oversight of companies and financial institutions, and a joint struggle for labor standards. Competition to attract energy investments must not be used to drive down wages, weaken protections, or pit workers against one another across national borders.

We support the global agenda to accelerate climate action. At the same time, we reject climate policies that deepen economic inequality, expand the dominance of private capital, and sacrifice workers’ rights.

For SP PLN, PP-IP, and SPNP, the fight against climate change goes hand in hand with the struggle to defend energy sovereignty, strengthen public services, and ensure a decent standard of living. Workers must have a say in determining the direction of change, with their rights and future protected.

The unions’ key message for COP31:

There is no Just Energy Transition without Public Ownership, Public Investment, Workers’ Rights, and Energy Democracy.

Jakarta,  10 November 2026

 Muhammad Abrar Ali     Hery Artady                 Fandi Setia
         Ketua Umum           Ketua Umum          Ketua Umum
    SP PLN                       SPNP                     PP-I

Contact Person:
1.Irma Rahmawati, SPPLN, Cell/WA: +62 813-2114-8558
2.Nanda Pitasari, SPNP, Cell/WA: +62 821-3966-6689
3.Teguh Ronal Setiawan, Cell/WA: +62 821-1111-7842
4.Indah Budiarti, PSI, Cell/WA: +62 813-8041-6310

Statemen in Bahasa Indonesia

 

 

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