Indonesia Must Pursue a Public Pathway for Just Energy Transition

At the 15th Asia-Pacific Regional Conference, PSI affiliates adopted a resolution urging Indonesia to reject privatisation and adopt a public pathway for its energy transition. While welcoming the Constitutional Court’s decision affirming state control of electricity, the resolution raises alarm over government plans to expand private power producers and accept neoliberal conditions under the Just Energy Transition Partnership. It calls for protection of workers and communities, and promoting South-South cooperation to achieve energy sovereignty and climate justice.

RESOLUTION #9: ENERGY TRANSITION IN INDONESIA AND THE NEED FOR A PUBLIC PATHWAY APPROACH

The 15th Asia Pacific Regional Conference (APRECON) Meeting in Kathmandu, Nepal, 8 - 11 September 2025

WELCOMES the December 2024 decision by the Constitutional Court of Indonesia reaffirming the legal validity of state control of the country’s electricity sector as stipulated in Article 33 of the 1945 Constitution article (2) and (3).

APPLAUDS the work of the Gerakan Kesejahteraan Nasional (GEKANAS) coalition, including PSI affiliates, in petitioning the Court and securing this significant victory for progressive forces in their struggle to fight privatisation and liberation of electricity. 

CONSIDERS the government’s recent proposals to expand the role of Independent Power Producers (IPPs) against with the Court’s December 2024 decision. If realised, this expansion will compromise the Indonesian state-owned electric utility company’s (PT PLN Persero) finances which leads to an increase in the state's financial burden, making electricity prices unaffordable for the public, weaken the utility’s capacity to drive the energy transition, and leave final investment decisions in the hands of foreign multinationals.

NOTES the current investment strike by IPPs and private capital; the country faces an investment shortage in geothermal, hydroelectric and solar power, technologies that are crucial to both the country’s energy transition and for a planned reduction in coal dependency

IS ALARMED by the neoliberal conditionalities that accompany the proposed Just Energy Transition Partnership (JETP) with Indonesia, including the removal of price controls and the extension of ownership rights to private interests. These proposals amount to “green structural adjustment” and will compromise the country’s energy sovereignty, policy independence, and likely increase electricity prices for the working class and small businesses.

CALLS UPON the government of Indonesia to reassess its energy transition policy framework in the light of the decision of the Constitutional Court and to adopt policies that are consistent with Article 33 and a “public pathway” approach 

FURTHER CALLS UPON the government of Indonesia to reinstate PT PLN Persero as a vertically integrated public utility, thus emulating Mexico’s decision to limit the presence of IPPs and to pursue a policy anchored in public ownership and prudent energy planning. 

URGES the Government of Indonesia, in the spirit of the Bandung conference of 1955 and in the light of the rich countries’ failure to meet their climate obligations, convene a process that is dedicated to building South-South cooperation to address the threat of climate change. And urges the Government of Indonesia to fully implement all Decisions of the Constitutional Court of the Republic of Indonesia related to the Judicial Review of the Electricity Law, in the spirit of Indonesian nationalism and patriotism, by enacting legislation that genuinely upholds the mandate of the Constitution.

FURTHER URGES the Government of Indonesia to realign the management of electricity as a strategic national asset by prioritizing the interests of the Indonesian people - particularly in relation to private land ownership, customary (ulayat) rights, and collective access to natural resources under state governance - in order to realize the nation’s vision of energy sovereignty, and urges the government of Indonesia to use its influence in multilateral spaces to champion a global public goods approach to energy transition and climate protection, where the costs of transition are shared by all, within the framework of common but differentiated responsibilities under the United Nations Framework Convention on Climate Change (UNFCCC).

RESOLVES to continue the campaign for a Public Pathway to secure a just and equitable energy transition in Indonesia. Further resolves to share experiences of the fight for public pathways across the region to secure public energy and decent work for all. 

Submitted by: 

Federasi Serikat Pekerja Farmasi dan Kesehatan Reformasi (FSP FARKES R)

Serikat Pekerja PT PLN Persero (SP PLN)

Serikat Pekerja PT PLN Nusantara Power (SPNP)

Persatuan Pegawai PT PLN Indonesia Power (PP-IP)

Serikat Pekerja Angkasa Pura Indonesia (SP API)

Serikat Pekerja Perusahaan Air Minum Jakarta (SP PDAM Jakarta)

Serikat Pekerja Badan Penyelenggara Jaminan Sosial Ketenagakerjaan (SP BPJS TK)

Resolution 9: Indonesia Must Pursue a Public Pathway for Just Energy Transition