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A Just Energy Transition in Indonesia: Analysis of regulatory gaps in the protection of affected groups

The Joint Statement on the Just Energy Transition Partnership (JETP), issued by the Indonesian government, International Partners Group (IPG), and other international partners, emphasises the importance of environmental, social, and governance in developing transition financial frameworks and recognises the existing gap between current standards and energy transition needs.

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This prompts a question: Does Indonesia’s current regulation meet international standards, especially when it comes to anticipating the energy transition impacts on the labour sector? A joint study by Yayasan Indonesia CERAH and the Indonesian Centre for Law and Policy Studies (Pusat Studi Hukum dan Kebijakan Indonesia [PSHK]) seeks to answer this question and provide recommendations for the government to consider.

This study reveals a regulatory gap in the protection of local communities, specifically those impacted by the energy transition. The study proposes that the government accommodates the protection and mitigation of affected communities by revising Presidential Regulation No. 112 of 2022 on the acceleration of renewable energy development. In addition, it suggests creating operational policies that promote the protection of labour rights, especially daily wages for workers.

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