Parallel Session 3

Topic: Integrating Indonesia Emas 2045 into Skilled Workforce for the Energy Transition

The success of the energy transition depends not just on technology or policy, but also on the people. A skilled and adaptable workforce is the backbone of this transformation. Additionally, ensuring that workforce development is effectively implemented in a just and sustainable manner is crucial. This notion aligns with the National Medium-Term Development Plan (Rencana Pembangunan Jangka Menengah Nasional/RPJMN) 2020–2024, which emphasizes the importance of human resource development, increasing economic productivity, and advancing digital transformation.

According to a report by the International Energy Agency, the global energy transition is expected to create 14 million new jobs, with around 5 million jobs shifting from the fossil fuel sector to the renewable energy sector. In Indonesia, the OECD (2024) forecasts that job creation will be driven primarily by solar PV, biomass & waste, and geothermal industries, requiring intermediate levels of skills and knowledge. Although the energy transition presents many opportunities, significant challenges remain. One of the primary obstacles is the low skill level of the Indonesian workforce, as the majority of workers still have a secondary or lower education level, limiting their readiness for green technology-based jobs. Additionally, low green skills literacy poses a barrier in preparing the workforce to support the energy transition.

The Center for Employment Policy Development, Ministry of Manpower reported that Indonesia has the advantage of a large productive-age population, projected to reach 215.37 million people in 2024, with a labor force participation rate (Tingkat Partisipasi Angkatan Kerja/TPAK) of 70.1%. The young generation, dominating the productive workforce, is also highly adaptive to technology. However, Indonesia faces a significant skills gap and the informal sector remains dominant at 59.16%. This challenge is further exacerbated by the development gap between urban and rural areas.

Moreover, collaboration between the government, private sector, and educational institutions remains suboptimal, leading to insufficient workforce readiness to meet industry demands. Other challenges include the prevalence of low-quality jobs, social inequality, and unemployment among higher-education graduates, indicating a mismatch between workforce skills and market needs. This trend underscores the importance of effective policies, robust data, and strong regulatory frameworks. These frameworks should include targeted incentives to encourage investment from private sectors in training and clean energy technologies, as well as clear certification standards to ensure workers acquire the skills necessary to thrive in emerging sectors. Additionally, data-driven approaches will be crucial for identifying skill gaps, tracking progress, and ensuring that training programs align with the evolving needs of the energy transition.