Human Resources and Technology Become the Challenge

AFP/RONNY HARTMANN

Electric car assembly at the Volkswagen (VW) automotive plant in Zwickau, Germany, February 25, 2020.

JAKARTA, KOMPAS — Human resource capacity and technological mastery still remain the challenges to Indonesia’s green economy development program. Industry players also need fiscal and non-fiscal support from the government in transitioning to clean energy.

According to Environment Director Medrilzam of the National Development Planning Agency (Bappenas), the target to absorb 1.8 million people of the new workforce by 2030 required achieving certain competencies, especially in the renewable energy sector.

"Besides the challenges of human resource capacity and technological mastery, there are other things that are no less important, namely investment," he said on Monday (8/8/2022) in Jakarta.

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Competitive human resources and economic productivity, Medrilzam added, were part of the transformation towards developing the green economy. If Indonesia was not ready to transform into a green economy, the trade sector would be affected by trade barriers. This was because a number of countries had started to apply green requirements to the commodities trade, such as the use of clean energy in the manufacturing sector.

The strategy had been prepared, although it would not be easy to realize, especially in terms of funding.

To support the realization of a green industry, added the Investment Ministry’s Promotion and Investment Deputy, Nurul Ichwan, the government must be ready to provide support, one of which was to supply clean energy for industrial electricity. The strategy had been prepared, although it would not be easy to realize, especially in terms of funding.

Moreover, Indonesia was still highly dependent on coal. In addition to supplying electricity for domestic consumption, it was also the main source of state income. According to Nurul, the government must address this issue immediately through intensive interministerial communication to formulate a strategy.

KOMPAS/SOELASTRI SOEKIRNO

The Toyota C+Cipod electric car from PT Toyota Astra Motor will be placed on the island of Samosir, in Lake Toba, North Sumatra, starting Tuesday (19/7/2022).

“If we fail to provide clean energy for industry, it will lead to tremendous economic failure. Investment is driven by the market. We can't do anything if the market rejects our goods even though they are cheap, because the goods are not green," said Nurul.

Incentives

One of the challenges to using clean energy in Indonesia was making prices competitive in comparison to fossil energy. This requires regulatory support.

For this, according to Alin Halimatussadiah, the environmental economics head of the Institute for Economic and Community Research at the University of Indonesia business school, fiscal and non-fiscal incentives were needed to drive green energy use. Green energy use at the consumer level must also be simplified. “In terms of planning and targeting in green energy use, progress has been made. However, in making derivative policies and commitments, [the effort] must be more serious,” she said.

It was important to monitor the process continuously to observe the shifts in certain sectors, including in the provision of technology and human resources.

Alin added that the transition to renewable energy would also effect changes in the economic structure. It was important to monitor the process continuously to observe the shifts in certain sectors, including in the provision of technology and human resources.

The same thing was conveyed by chairman Muhammad Yusrizki of the Permanent Committee on New and Renewable Energy at the Indonesian Chamber of Commerce and Industry (Kadin). According to him, government support was needed in the form of regulations, infrastructure, and incentives.

VINA OKTAVIA

An electric car tour group from Jakarta to Jambi organized by the Ministry of Transportation arrived in Bandar Lampung, Monday (17/1/2022). The tour was carried out in the context of a campaign to use environmentally friendly vehicles.

For example, to reduce fossil-generated electricity consumption, the private sector needed regulatory support to purchase low-carbon electricity without waiting for the establishment of a renewable energy-generated electricity network operated by state electricity company PLN.

"However, these external obstacles cannot be overcome if we, as a business community, do not have the same commitment," said Yusrizki. (DIM/AGE/APO)

(This article was translated by Hyginus Hardoyo)