Jakarta, July 18, 2023—CELIOS and Yayasan Indonesia CERAH highlighted the importance of local government involvement in the launch of JETP. Bhima Yudhistira, CELIOS Director, stated, “For example, around 4,666 direct workers, both permanent and non-permanent, will be affected by the closure of coal-fired power plants in Langkat, Cilacap, and Probolinggo. This does not yet include indirect workers, namely MSME operators around the power plant sites, as well as workers at coal source locations.”

Muhammad Saleh, a CELIOS researcher, added, “Ideally, local governments should begin preparing guarantees of material support and protection for communities after power plant closures. This means that when coal-fired power plants are retired, people who lose their income should still receive compensation through a transition to other professions.” Meanwhile, Muhammad Andri Perdana emphasized, “This potential loss of regional own-source revenue can be mitigated by negotiating with the central government for increased transfers to regions and by encouraging clean energy investment to replace lost local sources of income.”

Agung Budiono, Ad Interim Executive Director of Yayasan Indonesia CERAH, stressed, “This policy has positive long-term impacts. However, planning and mitigation strategies for the social, economic, and environmental impacts in the regions are essential to ensure that the transition truly puts just and equitable values into practice.” CELIOS’ study recommends active local government involvement, revision of Presidential Regulation No. 11/2023, development of reskilling/upskilling programs for workers, and strengthening the governance framework for a just energy transition.

CELIOS and Yayasan Indonesia CERAH highlighted the importance of involving local governments in the rollout of JETP. Bhima Yudhistira, CELIOS Director, stated, “For example, around 4,666 direct workers, both permanent and contract, will be affected by the closure of coal-fired power plants in Langkat, Cilacap, and Probolinggo. This does not yet include indirect workers, such as MSME actors around the PLTU locations and workers at coal supply sites.”

Muhammad Saleh, a CELIOS researcher added, “Local governments should start preparing material protection guarantees for communities after the PLTU closures. This means that when coal-fired power plants are retired, those who lose income should still receive compensation through transitions to other professions.” Meanwhile, Muhammad Andri Perdana emphasized, “This potential loss of regional revenue can be mitigated through negotiations with the central government for increased transfer funds and by promoting clean energy investments to replace lost local income sources.”

Agung Budiono, Ad Interim Executive Director of Yayasan Indonesia CERAH, stressed, “This policy has long-term positive impacts. However, planning and mitigation strategies for social, economic, and environmental impacts in the regions are essential to ensure that the transition truly implements just and equitable values.” CELIOS’ study recommends active local government involvement, revision of Presidential Regulation No. 11/2023, development of reskilling/upskilling programs for affected workers, and strengthening governance frameworks for a just energy transition.

Contact Person:

Saleh, CELIOS Researcher (082133290067)

Wicaksono, Yayasan Indonesia CERAH (+6287774015946)

Download: CELIOS_Percepatan_Transisi_Energi_di_Daerah_Dampak_dan_Peluang_Daerah