Union Aid Abroad – APHEDA hosted a ‘Just Transition’ sharing session in Jakarta between Australian and Indonesian union representatives, advocating for a just transition for workers affected by the coal phase-out in both countries.
Steve McCartney, State Secretary of the Australian Manufacturing Workers’ Union (AMWU) in Western Australia, shared his firsthand experience of negotiating a just transition for workers impacted by the planned closure of coal operations in the town of Collie, which is due to wind down by 2030.
Trade union representatives from KSPI – Konfederasi Serikat Pekerja Indonesia (Indonesian Trade Union Confederation), KSBSI – Konfederasi Serikat Buruh Sejahtera Indonesia (Confederation of Indonesia Prosperity Trade Union), the Chemical, Energy and Mining Workers Union (CEMWU) of the All-Indonesian Trade Union Confederation (KSPSI), and the Local Initiative for Occupational Safety and Health Network Indonesia (LION) also joined the discussion.
Collie: The Australian experience of phasing out coal
When discussions around coal phase-out began in 2007, McCartney said he faced disbelief—and even hostility—from workers in Western Australia, many of whom were adamant that coal would not be phased out in Collie during their working lives. But as more information emerged confirming plans to close the coal mines by 2030, workers began to engage in the conversation.
Indonesian union representatives related closely to these experiences. Many are working directly with workers in two of Indonesia’s key coal-producing regions—East Kalimantan, where coal contributes 33% of GDP, and South Sumatra, where it contributes 6%.
Similar struggles in Indonesia’s coal regions
Union Aid Abroad – APHEDA partners with KSPI and KSBSI under the Innovation Regions for a Just Energy Transition (IKIJET) project, funded by the German government. In parallel, KSPSI is working in the same regions under the Union Capacity Building on Just Energy Transition project, supported by Mondiaal FNV.
These unions are working at the local level to raise awareness of the Indonesian government’s commitment to reduce coal reliance from 2030 as part of broader efforts to reach net zero emissions by 2060—and, crucially, to mobilise workers to demand a just transition. They face many of the same challenges that McCartney described in the early days of the transition planning in Collie.
In the Australian case, the approach was to tackle the issue through collective action. The unions – the Australian Manufacturing Workers’ Union (AMWU), the Australian Services Union (ASU), Electrical Trades Union (ETU) and the Mining and Energy Union (MEU) – worked together and played an essential role in embedding just-transition language into the initial planning efforts, and lobbying for worker-centric metrics like skills assessments, paid retraining and support packages. (Learn more about Collie’s case here)
While the Indonesian government has committed to phasing out coal, production shows few signs of slowing. As a result, many workers and communities are sceptical about the timeline for transition. Nevertheless, planning is underway. In early 2024, regional consultation forums were launched in East Kalimantan and South Sumatra, bringing together provincial government, civil society, and community representatives to contribute input on transition planning.
Unions are working with local affiliates to ensure the voice and concerns of workers are heard in these discussions. However, while there are opportunities to engage, Indonesian union representatives say they need more detailed information about how the proposed phase-out will impact workers directly, as well as the pros and cons of the alternatives being presented.
Many raised concerns that future job opportunities may offer lower wages or poorer conditions compared to those in the current coal supply chain.
Bottom-up power
One key lesson from Collie? Transitions only work when they’re built from the ground up.
In Western Australia, unions led the way—not just inside workplaces, but across the community. McCartney highlighted the creation of a local committee of elected community representatives. “This wasn’t just about securing future jobs for these workers—it was about securing futures for their kids too,” he said.
That message resonated with Indonesian unionists. Many are already negotiating collective agreements that include just transition clauses—establishing workplace committees and securing employer commitments to support worker reskilling.
One participant summed up the stakes clearly:
“We need to decide—will we accept a transition handed down from above, or will we organise to shape it from the bottom up?”
In Collie, skills training has been made available to all workers, along with tailored job placement support for everyone impacted in the community. In Indonesia, under the IKIJET project, Union Aid Abroad – APHEDA is supporting the development of skills training programs in East Kalimantan and South Sumatra. These courses will enable workers to develop electrotechnology skills that prepare them for current local job opportunities as well as future roles in the renewable energy sector.
What’s Next: Solidarity in action
Indonesian unions are clear-eyed about the road ahead. They are building grassroots awareness and securing rights by negotiating collective bargaining agreements with coal production employers that include just transition clauses—such as the establishment of workplace committees and commitments to support skills development programs.
Unions have also called for more tools—case studies, real-life examples, and resources—to strengthen their strategies and influence over policy.
Union Aid Abroad – APHEDA, together with union partners in Australia and Indonesia, is working to meet that call: by documenting lessons from Collie, supporting skills development, and fostering cross-border solidarity that places workers at the centre of climate action.
Because a just transition doesn’t happen by accident—it’s won through organising, planning, and international solidarity.
