As Indonesia moves toward a promised reduction in its reliance on coal, with President Prabowo recently reaffirming a vision to phase out all fossil power by 2040, Union Aid Abroad–APHEDA’s union partners are stepping up efforts to advocate for a just transition for all and ensure that informal economy workers are not left behind.
APHEDA-commissioned research in East Kalimantan and South Sumatra, where union are focusing their efforts, revealed that coal mining contributes up to 79% of local revenue in some towns. The shift away from coal will not only impact those working in coal production companies, but also a vast network of informal economy workers — from food vendors and transport providers to small business owners — who often lack legal protections, secure incomes, or access to social safety nets.
Empowering informal workers to have a voice
Indonesian Trade Union Confederation (KSPI) have established a task force dedicated to ensuring informal workers have a voice in the country’s ambitious plans to transition to renewable energy and organised Focus Group Discussions (FGDs) to strengthen collaboration between trade unions, civil society organisations, and other stakeholders in this process. In addition, their workshops and training programs provide a space to discuss key challenges facing informal workers, such as a lack of social protection, limited access to reskilling, and the risk of job loss without compensation. Informal economy workers - including farmers, fishers, construction workers, couriers, and small traders – have focused on building negotiation, communication, and advocacy skills, while KSPI has used this opportunity to encourage union membership.
KSPI Vice President Kahar S. Cahyono summed up the spirit of this effort: “Including informal economy workers is not only about the principle of ‘leaving no one behind’, but about solidarity. When informal workers remain unprotected, it weakens the position of all workers. Building solidarity between formal and informal workers is essential to achieving justice in the world of work.”
Echoing this, Perdhana Putra, Head of FSP KEP–KSPI in Kutai Timur, added: “The energy transition cannot simply be about technology and investment; it must also ensure fairness for all workers. It will only be truly just if both formal and informal workers are equally involved and protected.”
Rethinking union organising
Sulistyono, Secretary of the National Center (Sekretaris Pimpinan Pusat) of the Chemical, Energy and Mining Workers Union (CEWMU) of KSPSI explained how they are adapting their organising strategies to be more inclusive: “Our goal is to raise awareness across the broader community about the coal phase-out and the union’s advocacy for a just transition—not just for members, but for all affected individuals”.
To do so, they are inviting informal economy workers to join meetings alongside their coal-mine worker members. This includes outsourced contract workers, food and beverage vendors, and stall owners, and encourages women in particular to join the discussion about the future of their community and the importance of a just transition in the shift towards clean energy.
Preparing for transition
To respond to immediate needs, Confederation of Indonesian Prosperity Trade Union (KSBSI) has recently facilitated discussions directly with local government agencies in coal mining towns about how they could work together to support workers who are impacted by the slowing down of coal production. A workshop in Berau, East Kalimantan, included informal economy and self-employed people who provide transport, catering and vending services in coal mining towns – whose livelihoods are reliant on the production of coal and related industries and services, and short-term contract workers who had recently been laid off from coal mines. Local government representatives shared information about available and planned support services, including social protection, job-seeking support and a new vocational training center, scheduled to open in January 2026, where workers could develop skills they can use in jobs that don’t rely on coal production.
Facilitating access to competency-based training aligned with local needs, such as that offered by local government vocational training centres, will be an essential component of a just transition away from Indonesia’s reliance on coal.
