Strengthening Commitment to Energy Democracy: Indonesian Electricity Workers Union Attends TUED South Inter-Regional Meeting in Mexico City

Two electricity sector unions in Indonesia, Persatuan Pegawai PT PLN Indonesia Power (PP-IP) dan Serikat Pekerja PT PJB (SP PJB) participated in the “TUED South Inter-Regional Meeting II: A South-South Trade Union Conference on Energy Transition” which took place in Mexico City, Mexico, on February 4-6, 2025. With the main theme “Exploring Strategies to Reclaim and Restore Public Ownership & Democratic Control of Energy” this forum brought together union leaders from 30 countries, discussing strategies for a just energy transition.  

The delegation from Indonesia was represented by the General Chairperson, Bro Dwi Hantoro and Secretary General, Bro Andy Wijaya, menawhile SP PJB was represented by Bro Khoirul Anam, Chairman of DPU Muarakarang. Their presence emphasized the commitment in continuing campaign on just energy transition, especially in Indonesia’s electricity sector.

At this meeting, participants focused on the public pathway approach, a strategy to counter the privatization of the energy system driven by neoliberal policies. This approach places public control and democratic sovereignty as key pillars to ensure energy needs are met sustainably and in line with global climate goals.

The discussion also highlighted important issues, such as the restoration of public ownership of energy utilities, debt-free public financing, and the formulation of industrial policies based on energy sovereignty. Participating countries shared experiences, ranging from energy struggles in Mexico to energy transition in Colombia. The issue of unbundling and privatization in Indonesia’s electricity sector was one of the main topics raised by PP-IP, considering its impact on energy justice and public welfare.

Unbundling and Privatization: Threats to Indonesia’s Electricity Sector

Representing Indonesia delegation, Andy Wijaya shared and presented the situation of energy sector in Indonesia. He highlighted that the unbundling and privatization of the electricity sector in Indonesia, although declared unconstitutional through various Constitutional Court decisions, continues to be a threat to energy justice.

The issue of unbundling and privatization of the electricity sector has been going on for almost two decades. A series of judicial reviews have been filed to challenge this policy, which is considered inconsistent with Article 33 Paragraphs 2 and 3 of the 1945 Constitution. Some important decisions along the way are: Judicial Review No. 001-021-022/PUU-I/2003 in 2004, Judicial Review No. 111/PUU-XIII/2015 in 2016, Judicial Review No. 91/PUU-XVIII/2020 in 2021, and Judicial Review No. 39/PUU-XXI/2023 in 2024. These decisions show that unbundling and privatization efforts continue, despite being repeatedly declared to violate constitutional principles.

Unbundling—which involves the separation of production, transmission, and distribution functions in electricity provision—and privatization of the electricity sector are considered threats to energy justice. Some of the main aspects of concern are:

• General Plan for Electricity Supply (RUPTL), which often does not reflect the interests of the wider community.
• Privatization, which has the potential to sacrifice public interests for corporate profits.
• Excess Power, which is excess electrical capacity that is inefficient.
• Transmission Network Rental (Power Wheeling), which paves the way for the private sector to utilize public infrastructure.

This policy not only contradicts Article 33 of the 1945 Constitution which mandates the management of important branches of production by the state, but also has the potential to increase electricity tariffs, which would burden the public.

To counter the unbundling and privatization policies that continue to emerge like “zombies,” a collective movement called the National Welfare Movement (GEKANAS) was formed. This movement involves civil society, NGOs, environmental activists, academics, and researchers. Its main goal is to ensure electricity policies that are in line with Article 33 Paragraphs 2 and 3 of the 1945 Constitution, guarantee affordable electricity rates for all groups, and protect consumers and the environment from the negative impacts of privatization.

In addition, it was also conveyed that “Mapping Public Pathway Opportunities in the Global South (Indonesia)” was held to discuss challenges and opportunities in the Indonesian electricity sector. This underlines the importance of public pathways as a solution to address structural problems in electricity provision, while ensuring fair, sustainable and constitutional policies.

Indonesia has achieved an electrification ratio of 99.63% in 2022, as reported by the Ministry of Energy and Mineral Resources (ESDM). This achievement shows that almost all regions in Indonesia have enjoyed access to electricity. However, significant challenges remain, especially in terms of energy sustainability and fairness in electricity costs.

Indonesia’s energy mix, as summarized from data from the Directorate General of Electricity (2021), is still dominated by coal, with a proportion of 63.5%, while New and Renewable Energy (EBT) only reaches 13.5%. In addition, electricity oversupply reached 56% in 2022, creating inefficiencies in energy distribution and costs that burden consumers.

Dependence on Independent Power Producers (IPP) adds to the complexity of the problem. The selling price of electricity from IPP of Rp 1,015/kWh is much more expensive compared to PLN’s subsidy of only Rp 653/kWh. This shows a significant cost gap, which ultimately burdens the community.

One of the main points of discussion was the importance of referring to Article 33 of the 1945 Constitution as the basis for managing the electricity sector. This article emphasizes that branches of production that are important to the state, including electricity, must be controlled by the state and used as much as possible for the prosperity of the people.

Several decisions of the Constitutional Court (MK) have reaffirmed this principle, including MK No. 39/PUU-XXI/2023 regarding the electricity cluster in the Job Creation Law. The MK stated that electricity is included in the important production sector that affects the livelihoods of many people, so it must remain under state control.

Privatization of the electricity sector has become an issue that has raised concerns. Dependence on IPPs not only creates high costs for the community but also adds to the burden on the State Budget (APBN). This is contrary to the principle of social justice mandated by the constitution.

As a solution, the concept of public channels is an alternative to overcome the problems of the electricity sector in Indonesia. This public channel focuses on compliance with Article 33 of the 1945 Constitution, by rejecting unbundling and privatization, affordable electricity rates for all people, and consumer safety and environmental protection, avoiding the negative impacts of private corporate dominance.

In principle, this concept emphasizes that the electricity sector must be managed with the principles of social justice, where the welfare of society is the main priority, not the profit of a handful of parties.

After the meeting in Mexico, the Indonesian delegation continued their journey, on their way back, they stopover in Turkey. They held bilateral discussions with the Confederation of Revolutionary Trade Unions of Turkey (DISK). This organization oversees 22 trade unions in Turkey, including the health, energy, and local government sectors. DISK Chairperson Arzu Cerkezoglu shared insights on the struggles of public sector trade unions, highlighting challenges and opportunities to strengthen workers’ rights.

This meeting demonstrated the importance of international collaboration between trade unions to fight for energy justice. As part of the Global South, trade unions must continue to commit to building solidarity and common strategies to counter the neoliberal agenda that is detrimental to society at large.

The presence of representatives of the Indonesian electricity sector trade unions at the TUED South Inter-Regional Meeting reflects a strong commitment to overseeing a just energy transition. By prioritizing public channels and energy sovereignty, the electricity sector trade unions in Indonesia will continue to fight for electricity policies that are in accordance with the constitution, protect the interests of the community, and ensure environmental sustainability.

Through the TUED Joint Forum in Mexico and the union visit to Turkey, the Indonesian electricity sector unions have not only strengthened their position at the international level, but have also strengthened their struggle at the national level to realize a fairer, more affordable and sustainable energy sector for all Indonesians.