Publication

Employment Impacts of Energy Transition In Indonesia

This study by LPEM UI assesses how decarbonizing Indonesia’s power and automotive sectors will affect employment. Using modeling for three scenarios, it projects that transitioning the electricity sector in line with the Paris Agreement could generate 5.86 million direct job-years, mainly from solar PV construction, outweighing coal-related job losses. Total net job creation by 2050 could reach 7.07–12.17 million job-years. However, shifting from internal combustion vehicles to electric vehicles may reduce manufacturing and maintenance jobs, requiring workforce upskilling and stronger stakeholder collaboration to manage labor market impacts.