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1 October 2021

Optimistic Projection of New Renewable Energy Jobs in Indonesia?

UNPAGE Indonesia - As of 2020, there were around 340,073 people working in new and renewable energy plants across Indonesia, according to a Factor AG study for Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ).

Based on estimates from Factor AG, the number of workers in new and renewable energy plants will reach 496,405 people for Bioenergy PLT, Solar Power Plant (PLTS), and Wind Power Plant (PLTB) in 2030.

Meanwhile, the Institute for Essential Services Reform (IESR) estimates that by 2030 there will also be 1,721,435 people working in renewable energy plants. Especially PLTS, which will accommodate the largest number of workers, which is 826,440 people. Followed by PLTA 445,641 people, PLTB 166,848 people, bioenergy 125,280 people, PLTP 99,603 people.

In terms of workforce needs, PLTP development absorbs the most workers, according to a study by the Indonesian Renewable Energy Society (METI). Followed by PLTB and PLTA.

The provision of various stimuli that can encourage the development and implementation of renewable energy also creates jobs.

Fiscal incentives in the form of reduced income tax, tax holidays, and VAT are not collected when combined with the provision of loan guarantees, it will improve the renewable energy economy.

Providing renewable energy development funds for just 100 projects can create jobs between 10,000 and 30,000 people. Assuming that the funds used for the development of PLTS or PLTM up to a capacity of 10 MW.

Based on estimates, the construction of PLTS will require around 100 people during the construction period of one to one and a half years. Meanwhile, PLTM requires about 300 people during the construction period of two to three years.

Not to mention the provision of funds for the construction of PLTS Roof for 200,000 houses which can create quite a lot of jobs. Based on the assumption, the installation of each PLTS Roof requires at least five people for logistics and installation work. If we add up, the provision of PLTS Rooftop funds will be able to create `1,000,000 jobs.

Through this optimistic projection, it is like hinting that climate change is an opportunity for us to act better.

This article based on PAGE Indonesia study to support green recovery in the Energy Sector. The study was conducted in 2021 (https://www.un-pageindonesia.org/en/activities/read/workplan/green-stimulus-package-for-national-economic-recovery-energy-sector-executive-summary).