Indonesia is one of the world’s largest coal exporters and is home to nearly 300 coal-fired power plants. Yet in the key coal region of Muara Enim, South Sumatra, many plant employers and contractors have ignored minimum wage requirements, basic workplace health and safety standards, and national labour laws, putting the wellbeing and livelihoods of workers and their communities at risk.
This is not decent work.
Workers face the insecurity of short-term contracts, the dangers of broken helmets and inadequate gloves and boots, and management’s refusal to listen to workers’ safety concerns. The construction of the plants has resulted in numerous serious injuries, including permanent disabilities, as well as fatalities.
Those who have spoken up against these dangers and exploitation have been branded ‘troublemakers’ by management and local authorities, often experiencing harassment, demotion and unfair dismissal.
At the South Sumatra 1 power plant, for example, SERBUK Union Chair Kurniansyah, a strong youth advocate for workers’ rights, was dismissed a year ago on the grounds of redundancy, despite ongoing recruitment taking place. Meanwhile, his colleagues at nearby plants have experienced union busting and widespread intimidation. Worker activists have been interrogated at night by local police officials, some of whom hold security service contracts at the plants, while the national strategic designation of power plants has led to the military being stationed on site for security reasons.
But construction and energy workers in Muara Enim are getting organised to fight back against illegal practices and demand that their rights to decent work are respected. With support from the Indonesian Democratic Trade Union of the People (SERBUK) and the Building and Wood Workers’ International (BWI), workers across the energy supply chain are uniting to form workplace unions, advocate for proper wages, and secure employment and workplace safety.
One by one, workers are growing their power.
This consistent work of organising is resulting in major wins for workers and their communities. Meeting in houses and at streetside stalls near worksites, worker activists have been:
- collecting information about underpayment
- learning from each other about their legal rights
- turning information into effective industrial and legal action
Lismawati, a single mother and construction worker who is now a SERBUK leader, explains:
“Because my husband passed away, it was a struggle to support my family… but I saw the activity of the other workers talking about wages. When I heard about the union, and they explained this struggle, I knew I had to join.”
United action is bringing real wins
- Through a combination of protest and advocacy powered by trade union training, four branch unions have successfully secured appropriate sectoral minimum wages in their workplaces.
- Firefighters negotiated an increase of $55 per month above minimum requirements.
- The union ensured that PPE was provided to canteen workers.
- Illegal dismissals, overtime payments and social security rights are being pursued for a further 400 workers through mediation.
The power built through organising has also extended beyond individual workplaces. Union members successfully advocated for new legislation to guarantee decent working conditions for all in Muara Enim. Their efforts resulted in the adoption of a regional regulation on ‘Local Workers Empowerment’ by the Muara Enim Parliament in April 2026.
They achieved this by sharing experiences and building alliances with political representatives, the Manpower Office and the Labour Inspectorate.
The regulation clearly outlines workers’ rights to occupational health and safety and social protection for accidents at work. But workers are pushing for safety and equality for all. They successfully advocated for the regulation to guarantee workers with a disability the right to job training and employment without discrimination, as well as mandatory recruitment targets for workers with a disability: 2% in state-owned enterprises and 1% in the private sector.
Under Union Aid Abroad–APHEDA’s Partnerships for Decent Work in the Indo-Pacific Program (PDWIP), BWI and SERBUK members are building collective knowledge and strength to ensure greater safety, wellbeing and equality—not only for energy sector workers, but also for their families and communities.
Placing union work in this broader context is essential, as the South Sumatra SERBUK Committee argues:
“If you fight with your heart, it will reach the hearts of the members.”
This project is supported by the Australian Government’s Department of Foreign Affairs and Trade (DFAT) and the Australian Council of Trade Unions through Union Aid Abroad-APHEDA’s Partnerships for Decent Work in the Indo-Pacific program.