Jakarta – One of the objectives of holding a series of National Meetings of Communities and Civil Society Organizations entitled Realizing a Fair, Inclusive, and Transformative Energy Transition in Indonesia is to get perspectives from communities at the site level related to the equitable energy transition, including bringing recommendations about risk mitigation for the negative impacts of the ongoing energy transition in Indonesia. In this activity, participants were divided into 4 (four) groups based on relevant topics, namely Financing the Energy Transition in Indonesia; Fair, Inclusive, Gender Equitable, and Transformative, and Sustainable Energy Transition in the Mineral Sector; in the Coal Sector and the Renewable Energy Development Sector.

Furthermore, in the 2nd Plenary Discussion entitled “How is a Just Energy Transition According to Communities and People at the Site Level?” hosted by Dwi Sawung from WALHI on June 22, 2023, representatives of the discussion groups presented recommendations and indicators for energy transition for a just, inclusive and sustainable future.

The first group focused on the financing aspect of the energy transition in Indonesia. The recommendations included clear financing guidelines for the energy sector to guide financial institutions in developing policies and managing Environmental, Social, and Governance (ESG) risks, emphasizing the importance of sustainable business practices in the energy sector and the need for incentives for businesses that support renewable energy development. Ensure meaningful participation of affected communities. Avoiding fossil fuel-dependent infrastructure investments and prioritizing grants over loans to prevent increasing national debt. The group also identified critical indicators for financing a just and inclusive energy transition in Indonesia from governance, environment, economy, and social aspects.

The second group focused on the importance of a Just, Inclusive, Gender Equitable, Transformative, and Sustainable energy transition in the Minerals Sector. They highlighted indicators for achieving such a transition, emphasizing the need for women and vulnerable groups to access information and be involved in decision-making processes related to mineral sector energy transition projects at national and local levels. Emphasizing the importance of capacity building for women and other vulnerable groups in project sites to avoid negative social impacts such as migration, prostitution, drug abuse, and human trafficking. Access to health facilities, quality health insurance, and increased community resilience to climate change were also essential indicators identified by the group.

In addition, it emphasized the need for data and information on alternative livelihoods, sustainable financing for community development, and protection of the rights and welfare of women and vulnerable groups in mineral mining projects, including derivatives to the downstream sector. They called for more robust governance mechanisms, judicial review of relevant laws, and increased community participation in monitoring and auditing companies’ social and environmental standards compliance.

The third group focused on achieving a just, inclusive, and transformative energy transition in the coal sector. They discussed indicators related to the environment, governance, and social and economic factors. Environmental reclamation and restoration, solid regulatory frameworks, community reporting centers, and social protection for communities and workers in coal mining areas were highlighted as essential indicators. The group emphasized the importance of local participation and decision-making, access to information, capacity building, and the involvement of women, indigenous peoples, and vulnerable groups. They also highlighted the importance of revenue sharing with local communities, regulatory reforms for corporate social responsibility, and ensuring the welfare and rights of workers in the coal sector, including in the power sector.

Group 4 focused explicitly on how and what indicators are needed to fulfill an equitable and inclusive renewable energy transition for Indonesia. They mentioned several policy recommendations that may encourage a fair and inclusive energy transition. Among them are mapping social impact assessments such as research to see the impact of infrastructure development and initial evaluation of community culture (employment and potential occupation), information disclosure, public involvement, ensuring the rights/guarantees of workers and vulnerable groups, environmental studies that prioritize the principles of environmental justice and the democratization of energy or energy decentralization (the region has independence, can manage the potential for sustainable energy in their respective areas).

The panel discussion on achieving a just energy transition provided valuable insights and recommendations from various perspectives. A just and inclusive energy transition requires comprehensive actions that address governance, environmental protection, economic development, and social welfare by implementing the proposed recommendations and indicators.

Author: Raudatul Jannah
Reviewer: Aryanto Nugroho