Published at : 17 Jan 2014
Volume : IJtech Vol 2, No 1 (2011)
DOI : https://doi.org/10.14716/ijtech.v2i1.45
|Maria Elfani||London Metropolitan University, Institute for the Study of European Transformations, Tower Building 1st Floor, 166-220 Holloway Road London N7 8DB, UK|
A global demand for energy has forced many countries to search for alternative and renewable energy. An anticipated effect of the development of renewable is an increase in employment as part of new green jobs creation, a major benefit for Indonesia to cope with its high unemployment rate. This paper describes the impact of renewable energy development on the jobs creation in Indonesia. First, we identify current government policies relative to renewable energy. Second, this paper describes the definition of green jobs and what type of jobs might be created due to development of renewable energy. Third, companies in Indonesia currently operating in the renewable energy sector are analyzed for their potential growth. Research is based solely on secondary data analysis. Information publicly available from the government/ministry website was used to examine policies concerning renewable energy. Related journals and articles were used to explore plans for the creation of green jobs, and a database search was conducted to identify companies currently operating in the renewable energy sector. The Kammen et al. (2004) study of Jobs per Megawatt of Capacity identified that the renewable energy installed capacity in 2007 created approximately 14,000 jobs in Indonesia. The potential capacity of renewable energy will create 70,000-190,000 jobs in Indonesia.
Renewable energy, Employment, Indonesia
Ariati, R., 2009. National Energy Policy and Biomass Development Program in Indonesia, Ministry of Energy and Mineral Resources presented at 6th Biomass Asia Seminar, Jakarta 2009.
Badan Pusat Statistik – Statistic Indonesia, 2010. Employment According to Main Sectors. Available at
Badan Pusat Statistik – Statistic Indonesia, 2010. Monthly Report Social Economics Data, 2nd Edition, July 2010. Available at < http://www.bps.go.id download_file/IP_Juli_2010.pdf>
European Commission, 2009. The Impact of Renewable Energy Policy on Economic Growth and Employment in the European Union, Summary of the results of Employ-RES project. Available at
Hartoyo, B., 2007. Outlook of Indonesian Domestic Coal Supply and Demand Toward 2025, APEC Clean Fossil Energy Technical and Policy Seminar, Hanoi 2007. Available at
Hasoloan, M.A., 2006. Country Report the Indonesian Labor Market, Presented at Forum on the Restated OECD Jobs Strategy in Tokyo, Tokyo 2006. Available at
ILO, 2005. Indonesian Plantation Workers Still Face Lack of Labour Rights, Press release (Jakarta: 26 August 2005).
International Campaign for Ecological Justice in Indonesia, 2004. Sustainable Palm Oil: Mission Impossible?, Down to Earth, November 2004.
Kammen, D.M., Kapadia, K., Fripp, M., 2004. Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry Generate? RAEL Report, University of California, Berkeley. Available at
Law of the Republic of Indonesia, 2007. Law of the Republic of Indonesia Number 30 Year 2007 on Energy. Available at
Ministry of Trade, 2004. Number of Company and Worker across Sectors. Available at
Presidential Decree, 2006. Presidential Decree Number 5 Year 2006 on National Energy Policy. Available at < http://faolex.fao.org/docs/pdf ins64284.pdf>
Schambek, H. & E.Terras AG, 2007. Geothermie in Indonesien, Proceeding of the Conference on Renewable Energies for Embassies in Germany, Berlin 2007. Available at
Suryadarma, D., Suryahadi, A., Sumarto, S., 2007. Reducing Unemployment in Indonesia: Result from a Growth-mployment Elasticity Model, SMERU Working Paper January 2007.
United Nations Environment Programme, 2008. Green Jobs: Towards Decent Work in a Sustainable, Low-Carbon World, UNEP/ILO/IOE/ITUC September 1998. Available at
Worldwatch Institute, 2007. Biofuels for Transport: Global Potential and Implications for Sustainable Energy and Agriculture, London: Earthscan, pp. 124,126.