PALEMBANG, South Sumatra, Indonesia – South Sumatra Province is undertaking a significant economic shift, aiming to reduce its reliance on coal and foster a future built on skilled labor and sustainable industries. This transition is being guided by the Regional Consultation Forum (FKD) for Accelerating Economic Transformation, established last year through a Governor’s Decree.
The FKD brings together a diverse coalition of stakeholders – including local government, employers, trade unions, universities, civil society organizations, and the media – to collaboratively shape the province’s economic direction. Currently, the province is developing a Skills Development Roadmap for a Just Energy Transition, focused on coordinating efforts to upskill and reskill workers potentially impacted by the changing energy landscape.
Leading this effort is Hari Wibawa, Head of Economics and Development Funding at the Provincial Development Planning Agency (Bappeda). A native of South Sumatra, Hari has been instrumental in fostering collaboration and driving the province’s just transition agenda. He has been working on greenhouse and renewable energy issues since 2014, recognizing the critical need for this shift.
Over the past three years, with support from the ILO’s Innovation Regions for a Just Energy Transition (IKI JET) project, Hari has helped identify 13 potential sectors for development beyond coal. The province has prioritized coffee and tourism, with the ILO providing technical support. “Our next step is to raise public and stakeholder awareness about these two sectors,” Hari stated.
Preparing for a New Economic Landscape
Despite being Indonesia’s largest coffee-producing province by land area, South Sumatra’s coffee remains largely unknown to domestic consumers. Similarly, the tourism sector holds significant, yet untapped, potential. To capitalize on these opportunities, Hari is working with universities to integrate just transition and renewable energy awareness into their curricula, promoting green business practices and future employment prospects.
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The Provincial Manpower Office is playing a key role in preparing the workforce, focusing on strengthening government training centers to equip workers with the necessary skills. Hari emphasized the need to “prepare our local workforce” for these changes.
Collaboration extends beyond government agencies. Representatives from enterprises, business associations, and trade unions are actively involved in the FKD, providing valuable input on employment needs and ensuring consideration of labor rights, social protection, and livelihoods. Hari has also engaged the media, conducting training programs with the Indonesian Journalist Alliance (AJI) Palembang to raise awareness of the social and environmental impacts of the energy transition.
While the ILO’s support is time-bound, Hari affirmed the provincial government’s commitment to sustaining these efforts. “No matter what, South Sumatra must be ready,” he said. Muce Mochtar, the ILO’s National Project Coordinator for Just Energy Transition, applauded South Sumatra’s proactive approach, stating that it “demonstrates how provinces can lead the way toward sustainable and resilient economic transformation.”
Frequently Asked Questions
What is the Regional Consultation Forum (FKD)?
The FKD is a forum established by the Governor of South Sumatra that brings together local government, employers, trade unions, universities, civil society, and the media to jointly shape the province’s economic direction.
What sectors is South Sumatra prioritizing for economic diversification?
Coffee and tourism have been selected as priority sectors for development beyond coal, with technical support from the ILO.
What role is the ILO playing in this transition?
The ILO’s Innovation Regions for a Just Energy Transition (IKI JET) project is providing technical support and assisting in accelerating South Sumatra’s shift from coal toward renewable energy and other sustainable economic activities.
How can South Sumatra ensure its economic transformation benefits all its citizens?
