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An Assessment in Supporting Green Jobs in Indonesia

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An Assessment in Supporting Green Jobs in Indonesia An Assessment in Supporting Green Jobs in Indonesia by Paskal Kleden and Philipp Kauppert I. INTRODUCTION Indonesia’s environmental law is considered as solid by activists. Law no. 32 / 2009 on the 1.1. Context protection and management of natural re- Indonesia is currently facing a twin challenge sources was a DPR initiative (instead of the regarding the sustainability of its economy. It is government’s as is most often the case), and the third largest contributor to greenhouse gas was drafted with the assistance of a number of emissions in the world1 and a country with an civil society organizations. The law clearly unemployment rate of 7.4 percent in 2010.2 states that the government is responsible for Should Indonesia’s economic growth improve preventing pollution and environmental degra- in the future, it is likely that it is going to be dation, and that polluters should be punished.4 conducted at the cost of environmental sus- However, as will be explained later, the law is tainability. Because of the circumstances, sup- often contradicted by other laws that fuel envi- porting the development of green jobs, even ronmental deprivation. though not a silver bullet, can be one possible option for job creation. If not hampered by vested interest and conflict- ing policies, Indonesia has huge potentials to Considering Indonesia’s vast natural re- utilize its renewable energy sectors. The table sources, Indonesia should have the potential to below shows the difference between the ener- develop its renewable energy sector. President gy potentials and the installed capacities of Yudhoyono has also made commitments at a renewable energies: number of international forums. For instance, at his speech at the United Nations Framework Renewable Potentials Installed Convention on Climate Change (UNFCCC) in Sources Capacity Copenhagen in 2009 he elucidates on the re- Hydro 75, 67 GW 4200 MW sponsibilities that developing countries must Geothermal 27 GW 807 MW make in low carbon development so that they Biomass 49, 81 GW 445 MW Solar 1,200 GW (4,8 8 MW “do not repeat the historical mistakes of devel- 2 kWH/m / day) oped countries.” He further commits that Indo- Wind 9,29 GW (3 - 6 m/s) 0,6 MW nesia will reduce its emissions by 26 percent Source: World Bank, Executive Summary, In- (41 percent with external support) in 2020.3 donesia and Climate Change, Working Paper on Current Status and Policies, (Jakarta: World 1 World Bank, Executive Summary, Indonesia and Cli- Bank & DFID, 2007) & US Commercial Ser- mate Change, Working Paper on Current Status and 5 vice. Policies, (Jakarta: World Bank & DFID, 2007), p. 2. Indo- nesia with 3,014 MtCO2e is behind the United States (6,005) and China (5,017) 2 World Bank, Indonesia Economic Quarterly 2010, (Ja- the Ministry of Foreign Affairs Republic of Indonesia, karta: The World Bank 2010), p. 13, retrieved from http://www.deplu.go.id/Pages/SpeechTranscriptionDispla http://www-wds.worldbank.org/external/default/ WDSCon- y.aspx?Name1=Pidato&Name2=Presiden&IDP=496&l=e tentServer/WDSP/IB/2010/09/28/000333038_20100928 n , 12 October 2010. 015604/Rendered/PDF/567900WP0IEQ1S132B01PUBLI 4 UU 32 / 2009, p. 8. C10ENGLISH.pdf , 10 October 2010. 5 Anasia Silviati, “Indonesia Renewable Energy Market”, 3 President Susilo Bambang Yudhoyono, Speech at the retrieved from http://www.climatelaw.org/laws/indonesia/ UNFCCC Copenhagen, retrieved from the web - site of indonesiaenergy 1.2. Objective 1.4. The Green Job Definition & Its Relation The objective of the paper is to identify actors to Politics and policies related to green jobs. The paper The United Nations Environmental Program looks into government policies and civil society (UNEP) explains that green jobs are “those initiatives in reducing Indonesia’s carbon foot- that contribute appreciably to maintaining or print. Moreover, the paper looks at efforts that restoring environmental quality and avoiding have been conducted by international organi- future damage to the ecosystem.”10 Green jobs zations, and how FES can fill in the gap by can include highly sophisticated tasks such as using its network, resources and expertise. Out researching the second generation biofuels as of this analysis, FES Indonesia is expecting to well as lower skilled jobs that includes the in- receive a number of clear recommendations stallation of micro - hydro turbines or solar about its future and potential partner organiza- panels. tions role in promoting Green Jobs in Indone- sia.6 Another definition asserts that green jobs (1)”involve some tasks associated with improv- 1.3. Methodology & Framework ing the environment, (2)“provide a sustainable The research combines literature review with family wage, health and retirement benefits, interviews with various stakeholders of the and decent working conditions” (3)“should be green jobs sector that includes government available to diverse workers across the spec- agencies, CSOs, universities, and international trum of race, gender and ethnicity”.11 organizations.7 The study also looks at the projects of other FES offices in the world. The Sometimes, greening the economy would re- paper was also presented to a group of experts quire investments in technologies, equipment who provided peer review and new ideas. The and infrastructure. Supporting green jobs can paper emphasizes on three areas relevant for therefore be very financially demanding and green jobs: the economy, politics, and interna- very technical. tional relations; and the policy developments and constraints in the three areas. Nevertheless, the political aspect cannot be underestimated, as greening the economy is The recommendations of this paper are taking closely related with improving laws and regula- into considerations, FES’ overall work as a tions, as well as implementing existing regula- political foundation, its affinity with the social tions properly. democratic ideology, its existing network, and its financial capacity. The green jobs initiative Contrary to popular belief, a green economy will be conducted under the overall objective does not contradict growth. Countries like “promoting a sustainable and socially inclusive Germany and Denmark have successfully economy to contribute to higher standards of combined economic growth with a greening of social equality”8 and shares the overall budget the industrial sectors. From 1990 to 2006 with the traditional trade union work of FES.9 Denmark has successfully reduced its emis- sions by 5 percent while growing at 2.3 percent The challenge for the green jobs activities is which is above the EU average of 2 percent.12 that it is closely related to environmental preservation, and FES needs to find the niche In Indonesia, it seems that climate change has that distinguishes it from Greenpeace, Conser- become an important issue for the youth. A vation International, CIFOR or other organiza- survey13 that was conducted by the PI (Perge- tions which main concern is the environment. rakan Indonesia) in August 2010 shows that FES needs to work in this new field while main- there is an intermediate literacy among young taining its identity as a political foundation. 10 UNEP, Green Jobs: Towards decent work in a sustain- able, low-carbon world, (Nairobi: UNEP, 2008), p.35 11 Middle Class Task Force, “Green Jobs: A Pathway to a Strong Middle Class.” March 13, 2009, p. 5, retrieved 6 Philipp Kauppert, Green Jobs, a Fruitful Area of En- from http://www.whitehouse.gov/assets/documents/mctf_ gagement of FES Indonesia? (Terms of Reference for a one_staff_report_final.pdf, 10 November 2010. Concept Paper), FES internal document 2010. 12 World Bank, World Development Report 2010, Devel- 7 Ibid. opment and Climate Change, (World Bank: Washington 8 Kubo 2010. DC, 2010), p. 217. 9 Until October 2010, there is no indication that activities 13 The survey covers 300 young people in Jakarta, Jogja- for green jobs will be supported from external funding. karta and Solo. 2 people in big cities on the issue. A majority of derstood its responsibility to integrate sustain- respondents in Solo (70 percent) and in Jogja- ability into the formulation of economic policies, karta (58 percent) believes that human activi- and are therefore emphasizing on the im- ties are the biggest causes of climate change. portance of green industrial models. In addition over 90 percent of the respondents have experienced the effects of climate Within current academic and political discus- change. sions about development models, there gener- ally seem to be two competing orientation The above results are much better than the frameworks. The one model is the western perception of people in the United States. The liberal blueprint, represented by the Washing- survey of the Pew Research Center & the ton Consensus, which has created global frus- Press shows that only 59 percent of the re- tration and objections after the introduction of spondents agreed that there is solid evidence neo-liberal and pro-privatization policies within about the warming of the earth.14 Even though the last two decades. In direct opposition to the research of PI might not reflect the overall that stands the authoritarian model of the Bei- understanding of Indonesians, because of the jing consensus, mainly focusing on a strong small sample size, geographical and age limi- central state and its rigid control of the national tations, it shows that among young people in society and the economy. Social Democrats big cities, climate change has become a priori- have to learn out of the serious deficiencies of ty. those two models and consequently come up with alternative development frameworks and paths, where the primacy of democratic policy II. FES APPROACH AND EXISTING NET- prevails and the subordination of political to WORK economic interest is rejected. While in a struc- tural and electoral crisis in its region of histori- 2.1. The Social Democratic Framework cal origin (Europe), the dynamics within the Social Democracy is based on the values of different Asian societies could show if such an Freedom, Justice and Solidarity.
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