Jakarta—Decarbonising Indonesia’s energy system, in line with global efforts towards net zero emission (NZE) under the Paris Agreement, is expected to create significant job opportunities, according to a new study by the Institute for Essential Services Reform (IESR).
The study, “Deep Decarbonization of Indonesia’s Energy System,” projects that the electricity sector alone will contribute more than 3.2 million new jobs by 2050. Implementing a comprehensive decarbonization strategy across the energy system is predicted to increase this figure.
IESR Executive Director Fabby Tumiwa revealed that this huge potential for job creation requires the readiness of human resources (HR) with relevant specialised skills.
“The success of the energy transition depends not only on technology but also on the readiness of a workforce with specialised expertise and certification in the renewable energy sector. Strategic policy support is needed to encourage vocational training and higher education curriculum so that the energy transition can become a sustainable economic opportunity for all levels of society,” Fabby explained in the Webinar “Road to Indonesia Energy Transition Dialogue (IETD): Measuring the Readiness of Indonesian Human Resources in the Energy Transition Process”, Tuesday, August 27.
Fabby also highlighted the high level of open unemployment among the younger generation, especially Gen Z (age group 15-24). According to data from the Central Statistics Agency (BPS), in February 2024, 3.5 million people from this age group were unemployed out of 7.2 million open unemployed.
“The jobs that will be created through the energy transition process require a competitive workforce with the right skills and certification. The role of educational institutions is crucial in preparing human resources that meet the needs of the renewable energy industry,” he added.
IESR recommends five main strategies to ensure Indonesia’s human resources are ready for the energy transition. First, identify the required skill sets and strategize appropriate skills development.
Second, the budget for building training and education facilities related to clean energy technologies should be increased. Third, coordination between energy transition policymakers and agencies responsible for workforce preparation, such as the Ministry of Manpower and the Ministry of Education, Culture, Research and Technology, must be strengthened. Fourth, training programs should be prepared for workers from the fossil energy sector so that they can switch to the clean energy sector. Fifth, job transitions should be facilitated to reduce the risk of unemployment due to changes in the energy system.
On the same occasion, Ahmad Khulaemi, a Senior Trainer from the Ministry of Energy and Mineral Resources (MEMR), emphasised the importance of training and certification in improving the quality of human resources.
“We have trained and certified around 189 energy auditors by 2023. In addition, through the Patriot and Guerrilla programs, we are introducing the younger generation, especially final-year students, to different types of renewable energy such as solar, wind, and water,” Ahmad said.
Meanwhile, Adi Nuryanto, Director of Partnership and Alignment of Business and Industry, Ministry of Education, Culture, Research and Technology (Kemendikbudristek), also acknowledged the challenges faced in aligning industry needs with the education curriculum.
“Collaboration with industry is very important, including internship programs, joint curriculum development, and competency certification. Vocational education must be continuously updated to be relevant to the development of the renewable energy industry,” he said.
Furthermore, a discussion on the importance of ensuring a fair and inclusive energy transition, especially for affected workers, will be one of the main topics at the Indonesia Energy Transition Dialogue (IETD) 2024, which will take place on October 14-16, 2024. The event is expected to be a platform to discuss how Indonesia can face the challenges and capitalize on the opportunities of the global energy transition. (Hartatik)
