Few people will be as impacted by the coal phase-out as coal workers will. Clearly, they need to front and centre of the planning for the closure of mines and deeply involved in the preparations for life after mining. Without the voice of workers and unions shaping these plans, there will be no just transition.
Through the Innovation Regions for a Just Energy Transition (IKIJET) project, Union Aid Abroad–APHEDA has been partnering with unions standing up for workers in the coal regions and demanding that workers have a voice in energy transition plans – from the workplace, through to regional and national policies.
And it’s been paying off.
In the last 12 months alone, a total of five workplace agreements with just transition clauses have been negotiated by the Indonesian Trade Union Confederation (KSPI) and the Confederation of All Indonesian Workers Unions (KSBSI). These agreements are a positive sign of what can be achieved when unions build power, demand a voice and force coal companies to engage with their workers about the future.
Laid-off workers fight back and win
Despite the progress made, unions still face resistance from coal companies unwilling to engage and from others actively undermining them.
In Rawas Ilir, a coal mining district in South Sumatra, when KSBSI’s local union, FSB NIKEUBA, began recruiting workers at a coal company and providing training in preparation for negotiating a just transition agreement with the company, its union leaders and members were suddenly terminated. In total, 38 coal mine workers were laid off.
Many of these workers were employed on short-term contracts by subcontracted companies – an increasingly common and precarious arrangement in the coal sector. They had little hope of getting their jobs back. Until their union stepped in.
First, the union had meetings with the company. They asked them to reverse the unfair dismissals and pointed out that workers were being paid below the legal minimum wage and that the lay-offs targeted workers with a legal right to join and organise in a union.
When these requests were ignored, the union escalated the case, reporting the violations to the local police and labour inspectorate. They emphasised the importance of addressing labour violations and supporting a fair process for workers, especially those on the front lines of Indonesia’s just energy transition.
Through the union’s advocacy, 27 workers were reinstated with new contracts and minimum wages. Beyond their own workplace, coal mine workers across South Sumatra have seen in concrete terms the power of collective action – and the critical role they play in fighting for workers’ rights, especially in times of uncertainty and transition
Pushing for commitments to become reality
In 2025, alongside its pledge to reduce emissions, Indonesia affirmed its commitment to a just transition in its Second Nationally Determined Contribution. It sets out a vision for a decent future for workers affected by the energy transition, with consultation and dialogue promoting good jobs, social protection, labour standards, and the well-being of workers and their communities.
It outlines a decent future for workers affected by energy transition through dialogue and consultative processes, social protection, labour standards and the well-being of workers and their communities.
Building on this momentum, KSPI and KSBSI are preparing for a National Dialogue with government representatives in Jakarta in early June 2026. They will be calling for stronger regulations to ensure workers have a voice in planning for the coal phase-out and mine closures.
As a starting point, protecting workers’ rights to join unions and collectively bargain is fundamental to a just transition.