The Threat of Electricity Privatization Behind the Energy Transition: Uniting Union Voices

Various trade unions and civil society organizations gathered in a Network Discussion “Shared Common Understanding on Just Energy Transition – Trade Union Position”, organized by energy unions of SP PLN Persero, PP-IP and SPNP together with Public Services International (PSI) in Jakarta, on February 28, 2025. This discussion became a strategic space for trade unions to respond to changes in the energy landscape in Indonesia and the challenges faced by workers due to the ongoing transition scheme.

The discussion was facilitated by Colin Long, Coordinator of Just Transition Victorian Trades Hall Council, and Andy Wijaya, Secretary General of PP IP. In attending the discussion together with SP PLN Persero and Persatuan Pegawai PT Indonesia Power (PP IP), were partners representing KSPI, CEMWU, FSPKEP, SPEE-FSPMI, APHEDA, TURC, Solidarity Center and ICEL. The discussion was moderated by Budi Setianto (SP PLN) and Rita Tambunan (APHEDA), who ensured that the discussion remained focused and productive.

The discussion was opened by Indah Budiarti from PSI, who emphasized that the energy transition must take place through public pathway so that electricity remains a fundamental right controlled by the state.

“A just energy transition should not be a gateway for liberalization of the electricity sector. Public ownership of electricity must be maintained to keep it affordable for the community,” Indah said.

Indah highlighted the importance of the state’s presence in ensuring that the energy transition not only benefits investors, but also protects the rights of workers and the wider community. The future of energy in Indonesia, she said, must be designed so that no one is left behind, especially workers who are directly affected by this change. That is why this discussion is important.

Kicking off the discussion, Colin Long, Just Transition Coordinator of the Victorian Trades Hall Council, raised a fundamental question: how important is the union alliance in fighting for a just energy transition?

“Unions must unite in a broader alliance to ensure that the energy transition is not just an environmental project or economic investment, but also reflects social justice for workers,” Colin said.

He highlighted the need for strategic policies that not only favor corporations but also protect workers. Colin also emphasized the need for trade unions in Indonesia to establish relationships with trade unions in Just Energy Transition Partnership (JETP) donor countries.

“If unions in donor countries put pressure on their governments, we can ensure that JETP funds are not misused for energy transitions that hurt workers,” he added.

Andy Wijaya, Secretary General of PP IP, gave a critical perspective on JETP. According to him, JETP is a real step from the Paris Agreement. Developed countries are committed to providing assistance to developing countries to reduce emissions. However, he criticized that this assistance was given in the form of debt, which could be interpreted as a new form of economic colonialism.

Looking at the experiences of several countries that have received the JETP scheme, many critical notes have emerged. Transparency in the use of funds is often questioned, the debt burden is getting heavier, and the recipient country’s room to determine its own energy policy is limited. Instead of being a solution, JETP has the potential to create new dependencies on donor countries.

Observing the recent Labor 20 (L20) forum, Andy also expressed his disappointment. “Finally, the L20 meeting also had no new resolutions. No slogans were left behind, at the same time no one was invited to move forward.” This shows that there are no concrete steps that really have an impact on workers and a just energy transition.

He emphasized that electricity is a human right (HAM), so public ownership of the electricity sector must be maintained. “Electricity is a human right. Therefore, public ownership of electricity must be maintained,” he said. Privatization will only worsen inequality of access and prioritize corporate profits over the interests of the people.

Meanwhile, in building an alliance, Andy reminded that the focus of the struggle must remain focused. The alliance must remain on the path of struggle for climate justice and the welfare of the people.

“We have to make sure that if it is formed, it really voices the issues that have been agreed upon on the table. Not bringing alliances for other interests,” he said.

Kahar S. Cahyono, a representative from KSPI, expressed his disappointment with the JETP process that is running in Indonesia. In addition to the fact that there are no representatives from labor unions in JETP, KSPI was once invited to provide input in the preparation of the JETP document, but the input that had been submitted was not accommodated.

“Ultimately, the JETP document is very far from the perspective of protecting workers’ rights,” he said.

KSPI emphasized that the energy transition will have a wide impact on various sectors, including mining, electricity, automotive, transportation, and even the textile and garment industry. “Workers in these sectors will be directly affected. We need to urge the government to create regulations that protect workers’ rights and encourage companies to be willing to include the Just Transition clause in the Collective Labor Agreement (PKB),” he added.

Willy Balawala from the Solidarity Center highlighted the different perspectives between trade unions and non-governmental organizations (NGOs) in viewing the energy transition. This means that further discussion is needed to find more common ground.

“NGOs talk more about the environment, indigenous lands, forests and water. But for workers, the energy transition is about making sure the rice pot doesn’t spill. We can’t just talk about the environment without considering the impact on workers,” he said.

Meanwhile, Surya Tjandra from TURC emphasized that from this discussion, it seems that we all understand the main problems related to the energy transition. That what is happening now is not a just energy transition, but rather an energy expansion that does not really invite anyone to move forward.

Some of the sectors most affected by this process include mining, PLN, automotive, and informal workers around mining areas. They face an uncertain future due to changes in energy policies that do not prioritize labor protection.

Establishing a discussion forum on a just energy transition is not an easy task. Before that, it is important to clarify the ideas and agendas that are being fought for, including encouraging collective bargaining (CBA) that includes clauses related to Just Transition. In this way, companies begin to realize the urgency of transition planning that involves workers.

In addition, this effort must be supported by optimizing existing networks, such as involvement with international organizations such as the ILO. Collaboration with various parties will strengthen the position of workers in facing the impacts of changes in energy policy, ensuring a truly just transition that does not only benefit a few parties.

He explained that the discourse on increasing electricity rates is often used to frame the energy transition as the main problem for society, so that they more easily accept various transition policies that actually benefit corporations.

“We must be aware of the transition scenario that ends up privatizing electricity. If electricity falls into private hands, electricity rates will increase, and the public will bear the burden,” Surya said.

Participants recognized that the energy transition is a crucial issue that needs to be discussed further, especially in ensuring that the process is fair to all workers. Therefore, it was agreed that a follow-up meeting would be held to discuss each union’s position and views on the energy transition.

The next meeting aims to dig deeper into the various perspectives of each union, identify the challenges faced in various sectors, and find common ground that can form the basis for joint steps. This common view is expected to strengthen the position of the union in pushing for truly fair policies, ensuring the protection of the rights of workers affected by the energy transition.