Evi Krisnawati from the Federation of Pharmaceutical and Health Workers Unions (FSP FARKES) said “this decision provides protection for workers in the health sector, who are vulnerable to low wages, short contracts and outsourcing”

Among the wins for workers outlined in the ruling are:

• reinstatement of sectoral minimum wages and regional wage councils to set new wage standards taking into account cost of living and local economic conditions

• requirement for companies to develop structured wage scales, taking into account the experience and qualifications of employees.

• workers' severance payments to to be prioritised over creditors in cases of company bankruptcy

• requirement for bipartite negotiations surrounding termination of employment, with workers' wages paid during the dispute process

The case, brought by a coalition of PSI affilaites, represents the second recent constitutional court victory, following the 2017 ruling against water privatisation. Unions are now turning their efforts to defeating an electricity privatisation proposal set to be heard by the court later this year.

In January, PSI convened a workshop with over sixty Indonesian union leaders, where affiliates from around the world shares stories of struggles and strategies to defeat privatization. Participant Andy Wijaya from the IPTP electricity union said “I know I will feel very guilty if I don’t do anything to stop privatization and our children have to pay skyrocketing electricity prices.

Trade Unions for Energy Democracy, which PSI helped launch, also provided expert testimony to the Court, outlining the increased costs, precarity and reduced government oversight resulting from privatization and the need to keep utilities in public hands to drive the green transition.

Muhammad Abrar Ali, General Chairperson of SP PLN Persero, welcomed the decision. "We appreciate the Constitutional Court’s move to side with worker protection," he said.

However, he added, some other issues still need to be resolved.  The decision for the electricity sub-cluster is pending. Ruling in that sector will have a significant impact on the welfare of the community as a whole because electricity is a primary need.

There are concerns about the possibility of liberalisation of the electricity sector. Andy Wijaya, Secretary General of Persatuan Pegawai PT PLN Indonesia Power (PP-IP), a trade union working on just energy transition, highlighted that privatisation of the electricity sector, will suppress workers' rights and weaken state control over national energy sovereignty. He emphasised that the energy transition is a process that cannot be stopped or ended. The trade unions must campaign to ensure that the energy transition happens through public pathway, managed and funded by the government.

"The state should play the role of the main manager of the energy sector, ensuring affordable, sustainable and fair energy access for all. Thus, the government will be able to maintain full control over energy resources, while protecting workers from negative impacts such as layoffs or decreased work quality due to the dominance of private investors who are more profit-oriented," he said.

Andy stressed that the struggle is not over. The energy transition must take into account social justice, not just environmental aspects.

"We welcome the Constitutional Court's decision to annul some provisions in the employment cluster. However, we are still waiting for a decision on the electricity sub-cluster, which is crucial to ensure that the energy transition is managed fairly and remains under public control," he said.

He added that the results of the Constitutional Court's decision will affect the implementation of the energy transition because it will have an impact on transition funding.