Indonesia has the potential to create 72 million green jobs in the next four years, as the country expand its work in developing and renewable energy, according to a report from the Ministry of National Development Planning (Bappenas).
The projection came out as the labor force is dealing with wave of layoffs due to global economic uncertainty.
According to the Roadmap for Developing Indonesia's Green Workforce as part of the Indonesia's Green Jobs Conference (IGJC) 2025: Turning Vision Into Action, launched by Bappenas last April, the number of jobs with the potential to become green is projected to reach 56 million in 2025 and will increase to 72 million by 2029.
This roadmap will serve as a national guide for developing policies, human resource investments, and programs that encourage green economic transformation.
The Secretary General of the Ministry of Manpower, Anwar Sanusi, stated that the future of green jobs is very promising.
He further added that the government has developed a green jobs roadmap as part of the National Long-Term Development Plan (RPJPN) and the National Medium-Term Development Plan (RPJMN). Several government-owned training centers have also begun offering courses on green business and environmentally friendly technology.
Bappenas itself predicts that by 2025, the number of green workers in Indonesia is expected to reach 4 million people, or 2.7 percent of the total workforce, and could increase to more than 5.3 million people, or 3.14 percent, by 2029, under a high economic growth scenario.
The term "green jobs" refers to various types of work that support sustainability, reduce negative impacts on the environment, and encourage green economic growth.
The economic slowdown and digital transformation have hit several labor-intensive sectors. Data from the Ministry of Manpower shows that as of October 1, 2024, 52,993 workers were laid off, with the manufacturing sector being the largest contributor: 24,013 workers lost their jobs.
However, Anwar did not ignore the challenges, from human resources to the concept of green jobs, which many people still don't understand. "We have to ensure there's a business chain that truly supports green workers in earning a decent living," he said.
Wicaksono Gitawan, Policy Strategist and Project Manager at CERAH Indonesia, an environmental NGO in Jakarta, explained that the essence of green jobs lies in two main pillars: preserving the environment and ensuring employability.
Green jobs are not limited to the renewable energy sector. Opportunities can be found in many fields, from agriculture, manufacturing, construction, science, to the legal sector and creative industries like fashion.
Great, but limited potential
Echoing Bappenas, Wicaksono from the CERAH Foundation also revealed that the greatest potential for green jobs lies in the renewable energy sector: solar power, microhydro, and biomass.
According to him, although there are 72 million potential occupations in this sector that have been identified as green jobs, this potential is still hampered by skills gaps, policy gaps, and funding gaps.
"Companies engaged in green jobs often struggle to attract workers with the technical skills they need. Many engineering or renewable energy graduates choose to work abroad because of competitive offers," said Wicaksono.
The skills gap arises from the limited workforce with technical expertise in renewable energy or other green jobs. In many universities, relevant majors and curricula are still limited, especially at the vocational high school (SMK) or vocational education level in the regions.
"Our survey shows that only 45% of students truly understand what green jobs are. Among the general public, understanding is even lower," he said.
However, a survey conducted by the Indonesia CERAH Foundation in collaboration with Suara Mahasiswa UI (UI Student Voice) showed that the majority of young respondents (71 percent) see this sector as a promising career opportunity, as well as a means to make a positive impact on the environment and society. This figure aligns with the 98 percent of respondents who believe that an ideal career is not just about income, but also about contributing to sustainability.
This phenomenon is not unique to Indonesia. Plan International's 2022 research shows that the majority of young people in Asia, Europe, and the United States also aspire to have environmentally friendly jobs in the next decade. A Good Energy survey in the UK also found that a growing number of young people prioritize sustainability as a primary consideration when choosing a career.
This opportunity is also significant for the country. Developing green jobs has dual benefits: in addition to reducing unemployment, it also helps reduce carbon emissions, minimize pollution, and restore ecosystems.
"The development of green jobs is beneficial because it addresses two major issues simultaneously: employment and environmental issues," said Wicaksono.
Meanwhile, the policy gap arises because roadmaps and supporting regulations, such as power wheeling or direct purchase agreements (DPA), have not been fully implemented. This makes it difficult for the development of renewable energy power plants, especially large-scale ones, to integrate into the PLN grid, which is still dominated by fossil fuels.
Wicak cited the example of a centralized solar power plant in Way Haru, Lampung, which was initially built in 2016 to provide electricity to villages, but then stalled due to a lack of knowledge and skills transfer to the local community.
"Without skills sharing, the technology developed ultimately becomes unsustainable," he said.
The funding gap is also a significant obstacle. Investment in large-scale renewable energy projects is often hampered by the electricity oversupply in Java and Bali and limited network infrastructure. As a result, investment tends to flow to small-scale projects with limited labor absorption capacity.
Optimism and Caution
Bobby Gafur from the Manpower Division of the Indonesian Employers' Association (APINDO) stated that the potential for green jobs is seen as a strategic opportunity to strengthen Indonesia's competitiveness.
"Green jobs have enormous potential for the future, because Indonesia is rich in natural resources, human resources, and carbon resources," he said.
However, he emphasized the importance of formulating a more detailed green industrial transformation so that the need for a green workforce can be properly prepared and the ecosystem can be solidly established.
For small and medium enterprises (SMEs), green job opportunities also exist, such as in recycling, waste management, and organic farming, although they still face challenges such as capital, technology, and market access.
"In my opinion, among industries that have already moved toward a green industry, the relevant APINDO members are actually quite aware of the importance of this transition. Automatically, the need for green human resources will also emerge as a consequence. Sectors such as green financing, green manufacturing, and green energy have become leading sectors that open up many green job opportunities," he said.
Some examples of policies rapidly developing abroad to support green jobs include:
In Vietnam, for example, the direct power purchase agreement (DPPA) policy allows private companies to purchase renewable energy electricity directly from producers through the national grid. This policy has triggered a boom in investment and job creation in the renewable energy sector.
In South Africa, organizations like the Harambe Youth Employment Accelerator are connecting young job seekers with green industries. This model has been proven to accelerate reskilling and placement of workers in sustainable sectors.
Anwar added that the potential for green jobs in Indonesia is enormous. However, to become a new engine of the economy, a comprehensive strategy is needed: strengthening vocational education, opening incentives for the private sector, improving regulations that hinder investment, and public campaigns that raise awareness of the concept of green jobs.
"We hope that Indonesia can become a high-income country, with a stronger and more sustainable economic structure," he said.