Indonesia's path beyond coal: South Sumatra advances skills development for a just energy transition

Supported by the ILO, South Sumatra Province of Indonesia has validated its Skills Roadmap to ensure a smooth and just transition into the coffee and tourism sectors.

15 December 2025

A coal barge passes through the Musi River, Palembang, South Sumatra, Indonesia. 7/2023 © Antara Foto/Nova Wahyudi

Content also available in: Bahasa Indonesia

PALEMBANG, South Sumatra, Indonesia (ILO News) - As part of the province's economic transformation as a result of a just energy transition, the ILO's Innovation Regions for a Just Energy Transition (IKI-JET) project, in collaboration with the Institute for Economic and Social Research at the Faculty of Economics and Business, University of Indonesia (LPEM-FEB UI), has been providing technical support to the Provincial Government of South Sumatra to develop Skills Roadmap for a Just Energy Transition.

Following a series of interviews and focus group discussion with key provincial stakeholders in November, a validation workshop was held on 10 December in Palembang, South Sumatra. Facilitated by Niki Putu Geniki L. Natih, the lead researcher from LPEM-FEB UI, the workshop brought together 50 stakeholders from national and provincial government agencies, business associations, trade unions, CSO/NGOs, academia and the media to review and refine the draft Roadmap.

During the workshop, stakeholders actively contribute final inputs and feedback to the Skills Roadmap for a Just Energy Transition in South Sumatra Province of Indonesia. 12/2025

Hari Wibawa, Head of Economics and Development Funding at the Provincial Development Planning Agency (Bappeda) of South Sumatra, underscored the importance of the Skills Development Roadmap in preparing the province for a just transition from coal to alternative potential economic sectors. He also noted that through the Regional Consultation Forum (FKD) for Accelerating Economic Transformation, the Provincial Government has identified 13 potential sectors for development.

FKD in South Sumatra was officially established through a Governor's Decree in late 2024. Supported by IKI-JET, FKDs serve as collaborative platforms where local governments, industry, trade unions, university, media and civil society engage in structured discussions on economic diversification and a just energy transition.

"Coal mining has long been central to South Sumatra's economic growth, generating substantial revenue and providing employment. Today, we are focusing on identifying the skills needed in two priority sectors, coffee and tourism, which will be supported through the ILO's IKI-JET project.

Hari Wibawa, Head of Economics and Development Funding at the Provincial Development Planning Agency (Bappeda) of South Sumatra Muce Mochtar, ILO's National Project Coordinator for Just Energy Transition, explains coffee and tourism are selected because of their strong development potential in Indonesia's South Sumatra. 12/2025

Muce Mochtar, the ILO's National Project Coordinator for Just Energy Transition, noted that coffee and tourism were selected because of their strong development potential. South Sumatra is Indonesia's largest coffee-producing province, particularly for Robusta, while its tourism sector offers rich opportunities in culinary experiences, ecotourism and cultural heritage.

"These sectors offer significant economic value, strong job-creation prospects and meaningful opportunities for diversifying the economy beyond coal," he said. "Identifying the specific skills needed in the coffee and tourism sectors is essential to ensure that workers, particularly those currently reliant on coal-related jobs, and future young workers can transition smoothly into new, sustainable livelihoods."

During the workshop, stakeholders actively contributed final inputs and feedback. These included the importance of broad socialization to support the transition, the involvement of labour inspectors, the protection of workers' rights and access to social protection and the need for skills-training programmes complemented by post-training support such as coaching and business-strengthening initiatives for the two priority sectors.

Identifying the specific skills needed in the coffee and tourism sectors is essential to ensure that workers, particularly those currently reliant on coal-related jobs, and future young workers can transition smoothly into new, sustainable livelihoods.

Muce Mochtar, the ILO's National Project Coordinator for Just Energy Transition

"We will carry out a similar process in East Kalimantan, which holds the largest coal reserves in Indonesia and is another of our target areas. We hope that these two provinces can demonstrate strong examples of transitioning from coal to renewable energy and other sustainable economic activities through capacity-building, regional consultation forums and evidence-based policy formulation," concluded Muce.

Funded by the International Climate Initiative of the German Federal Ministry for Economic Affairs and Climate Action and the European Commission's Directorate-General for International Partnerships, the ILO's IKI-JET Project supports Indonesia in accelerating just energy transitions away from coal toward renewable energy and other sustainable economic activities.