Labour Unions Launches Position Paper ” Towards a Public Pathway Approach to a Just Energy Transition for Indonesia’s Power Sector

In an effort to strengthen the role of trade unions in the agenda of a just energy transition that favors public interests, 55 participants from SP PLN, PP IP, SP NP, and various partner organization trade unions attended the “Soft Launch Trade Unions Position Paper Towards a Public Pathway Approach to a Just Energy Transition for Indonesia’s Power Sector” in Jakarta, Wednesday (25/6). This meeting marked the launch of a position paper that is a significant milestone for the trade union movement in voicing the direction of a just, constitution-based, and public interest-oriented energy transition.

This position paper is not merely a technocratic document. It was born out of the need to provide strategic and ideological guidance for trade unions to formulate proposals for an energy transition direction that favors the people, not the market. In the context of the climate crisis, privatization pressures, and workers’ vulnerability to energy transition disruptions, this position paper serves as a tool for the struggle towards a just energy transition with a public pathway approach.

Opening this event, Indah Budiarti from PSI stated that this activity is not just the launch of a position paper. It is an important moment when the worker union firmly declares its position on the strategic issue called a just transition.

“We know that the energy transition cannot be separated from the global climate crisis, from the pressures of neoliberalism that dictate the direction of public sector privatization, and from the real risks to millions of workers and communities if this transition process is not carried out fairly, democratically, and in favor of the people,” said Indah.

She emphasized that the public-based energy transition must return to the constitution. “Through this position paper, the worker union conveys a public pathway energy transition towards a just transition. This pathway is an affirmation that the energy sector must be under public control,” said Indah. “That workers’ rights and public access to affordable energy must be the top priority.”

Following the opening remarks, Andy Wijaya, Secretary General of PP-IP, opened his presentation by underscoring the urgency of the crisis. “The energy transition is an obligation, because the climate crisis is real,” he stated. “Although the Paris Agreement was signed by hundreds of countries to reduce emissions, what we are seeing instead is an expansion of energy production.”

Andy highlighted the contradiction between concept and practice. “Just transition is not a one-size-fits-all system for every country.” In Indonesia, we must adapt to our realities and constitutional values,” he said. “Article 33 of the Constitution states that electricity is an important branch of production that must be controlled by the state.”

He then explained the core of the position paper that was launched. “We call it Article 33 Scenario: towards a public pathway approach for a just transition.” The essence is state control over the electricity sector for affordable electricity prices and environmental protection,” emphasized Andy.

Andy Wijaya emphasized that the energy transition must be built on three main principles: state ownership, affordability, and safety. “First, energy must be owned and controlled by the state. Second, energy prices must be affordable for all people. And third, the energy system that is built must be safe for workers, society, and the environment,” explained Andy.

The discussion deepened with a presentation by Dr. Sean Sweeney of the School of worker and Urban Studies at the City University of New York, and Coordinator of Trade Unions for Energy Democracy (TUED). Using data and graphs, he delivered a stark assessment of both global and national trends. “What we’re witnessing is not an energy transition, but a fossil energy expansion,” he asserted. “Science calls for drastic emission reductions, but the reality on the ground is moving in the opposite direction.”

He outlined six important points. First, “There is a gap between science and reality.” Countries are still pursuing coal,” he said. Second, “Electrification in Indonesia is indeed widespread, but it is supported by coal, not clean energy.” Third, “Indonesia’s emission trend continues to rise.” We are still very dependent on fossil fuels.

Fourth, he said, “The growth of renewable energy is very slow in Indonesia.” “Even though we have great potential.” Fifth, “Indonesia’s coal exports are actually hitting record highs.” And sixth, “Only 25% of coal is used for domestic needs. The rest is exported.” We still prioritize the global market over our own people.

Sean then highlighted the JETP scheme. “JETP promises large funds, but the majority is debt.” “The investment plan, CIPP, is still mysterious and not transparent,” he said. “And when we compare the RUPTL 2021–2030 with JETP, we see a lack of synchronization. RUPTL is still pro-coal power plants, while JETP talks little about real transition.”

He added, “JETP encourages an enabling environment for private sector entry, but it means deregulation, privatization, and subsidies for investors. The state has to bear the risks, while the profits go to foreign investors.”

Ending his presentation, Sean said, “The question for the UN agency now is: when will private investors show up?” All the incentives have been given, but they remain reluctant. This shows the deadlock of the market-based approach.

In the next session, the position paper document was dissected in depth. The core of the Article 33 Scenario is divided into two major proposals.

First proposal: Public funding, expand state assets. The document states that transition financing cannot rely on the private sector. “The transition will depend on public financing.” The government must use the state budget, public banks, and green bonds to finance the transition projects,” said Sean.

It is also mentioned that public banks must play an active role. “Banks like BRI and PT SMI should be directed to finance state-owned and community energy projects.” The document emphasizes that, “If the debt is managed directly by the government, rather than by PLN or IPP, the borrowing costs will be lower and fiscal risks will be more controlled.”

PLN must be reinstated as the primary driver of the energy sector. “PLN’s investment capacity needs to be fully restored, rather than merely acting as a conduit for electricity from the private sector.” The domestic de-risking scheme should be halted, and the state budget must not be used to underwrite private profits.

Sean emphasized, “The government must reclaim control over energy investment decisions instead of leaving them to profit-driven IPPs.” He rejected any transition that sacrifices workers’ rights or increases public debt, calling instead for a transition that generates quality jobs and strengthens public ownership.

Through the launch of this position paper, the labor union affirms its collective commitment to ensuring that the energy transition is fair, democratic, and centered on the needs of the people. The public pathway outlined in this document is not merely an alternative vision—it is a clear call to restore state control over energy in line with Article 33 of the 1945 Constitution, for the greatest benefit of the people. By strengthening public institutions, rejecting hidden privatization schemes, and upholding workers’ rights and public access, the energy transition can serve as a transformative step toward social justice and genuine energy sovereignty.

Concluding this launch, Indah emphasized that the struggle for a just energy transition cannot be carried out by one group alone. Broad support from various worker unions and civil society organizations is needed to voice and strengthen the public pathway approach as the main direction of the energy transition in Indonesia.

“This cross-sector collaboration is important to ensure that the transition process is not controlled by market interests, but by the principles of social justice, people’s sovereignty, and constitutional mandate.” Only with solid collective strength can we push for energy policies that favor workers, communities, and the environment,” she asserted.