South Sumatra Accelerates Just Energy Transition with Skills Roadmap and Broad Stakeholder Alliance

At the heart of this shift is the Regional Consultation Forum (FKD) for Accelerating Economic Transformation, established last year through a Governor’s Decree.

 

South Sumatra Province is stepping up efforts to reduce its reliance on coal and build a more skilled, diversified and sustainable economy, placing workers and local communities at the centre of its energy transition.

At the heart of this shift is the Regional Consultation Forum (FKD) for Accelerating Economic Transformation, established last year through a Governor’s Decree. The forum brings together provincial and local government, employers, trade unions, universities, civil society and the media to jointly shape South Sumatra’s economic future beyond coal.

As part of this process, the province is developing a Skills Development Roadmap for a Just Energy Transition, designed to strengthen inter-ministerial coordination and ensure workers affected by the transition are equipped with the skills needed to adapt to a changing labour market.

The roadmap was recently validated in South Sumatra with technical support from the International Labour Organization (ILO) under its Innovation Regions for a Just Energy Transition (IKI JET) project.

Local Leadership Driving the Transition

A key figure in advancing the province’s just transition agenda is Hari Wibawa, Head of Economics and Development Funding at the Provincial Development Planning Agency (Bappeda). A South Sumatra native, Wibawa has played a central role in strengthening collaboration among stakeholders and embedding just transition principles into provincial planning.

“I understand how crucial a just transition is for our province, which has long depended on coal production and mining,” Wibawa said. “Our collaboration with the ILO has helped prepare South Sumatra for this shift, and now we must ensure its long-term sustainability.”

Through the FKD, South Sumatra has identified 13 potential sectors to support economic diversification. With ILO technical assistance, coffee and tourism have been selected as priority sectors with strong potential for job creation beyond coal.

Preparing Workers and Future Generations

Despite being Indonesia’s largest coffee-producing province by land area, South Sumatra’s coffee remains relatively under-recognized domestically, while the tourism sector holds significant untapped potential.

To address this, provincial authorities are working with universities and training institutions to integrate just transition and renewable energy concepts into education and curricula, while promoting coffee and tourism as viable future employment pathways.

“The key question is whether our future workers are ready,” Wibawa said. “We must shift mindsets so young people can see the kinds of jobs emerging in these sectors.”

The Provincial Manpower Office plays a central role in this effort, with a focus on strengthening government training centres so they can deliver relevant upskilling and reskilling programmes aligned with the transition.

Social Dialogue and Media Engagement

Employers’ organisations, business associations and trade unions are actively participating in the FKD, helping identify labour market needs and ensuring that labour rights, social protection and livelihoods remain central to the transition process.

Recognising the importance of public understanding, the province has also engaged media organisations, including through journalist training programmes in collaboration with the Indonesian Journalists Alliance (AJI) Palembang.

“Media play a key role in educating the public about environmental impacts, fairness and livelihoods,” Wibawa said. “Their involvement strengthens transparency and public trust.”

A Provincial Model for Just Transition

The ILO praised South Sumatra’s approach as an example of how sub-national leadership can translate climate commitments into concrete action.

“Local leadership is essential for turning climate commitments into real change,” said Muce Mochtar, ILO National Project Coordinator for Just Energy Transition. “South Sumatra’s proactive approach—through the FKD, skills roadmaps and inclusive stakeholder engagement—shows how provinces can lead sustainable and resilient economic transformation.”

With ILO support time-bound, South Sumatra has reaffirmed its commitment to sustaining the just energy transition through strong institutions, skilled workers and continued social dialogue—positioning the province to navigate change while creating new opportunities for its people.