{"id":4809,"date":"2024-03-14T12:49:46","date_gmt":"2024-03-14T12:49:46","guid":{"rendered":"https:\/\/www.gli-network.net\/?p=4809"},"modified":"2024-03-14T12:50:42","modified_gmt":"2024-03-14T12:50:42","slug":"indonesia-tued-supports-unions-in-constitutional-court-battle-to-stop-jetp-energy-privatisation","status":"publish","type":"post","link":"https:\/\/www.gli-network.net\/?p=4809","title":{"rendered":"TUED: Indonesia &#8211; TUED Supports Unions in Constitutional Court Battle to Stop \u201cJETP\u201d Energy Privatisation"},"content":{"rendered":"\n<h4 class=\"wp-block-heading\"><em>Broad coalition organises to defend public energy clause in Indonesian Constitution, oppose\u00a0pro-privatisation electricity reforms<\/em><\/h4>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/assets-global.website-files.com\/63276dc4e6b803208bf159df\/65cd4238fedeec9c9eb96e6c_9DpOtY8aK1t5JB3cXbXXS9SbjlLgeNDhunjxn0OBZsh4uClGxCYzI9DOf5J4tDYWP9L-BgvyqjAnv31x2J7YqZrSe5Wwo3bPvmYIGnYWAkaEy6X2ra9P5Wrzcb5ULAnWMARHppOROu_FcDJcgSJJPvM.png\" alt=\"\"\/><figcaption class=\"wp-element-caption\"><em>Indonesian power sector unions on steps of the Constitutional Court Building, January 15th, 2024. \u201cUnbundling, No! Electricity Privatisation, Reject!\u00a0<\/em><\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Following yesterday\u2019s\u00a0<a href=\"https:\/\/www.aljazeera.com\/news\/2024\/2\/14\/prabowo-subianto-claims-victory-in-indonesian-presidential-election\">elections<\/a>\u00a0in Indonesia, we turn to the country\u2019s energy sector and the Indonesian labor movement\u2019s fight to defend public energy against the threat posed by the \u201cprivatise to decarbonise\u201d agenda reflected in the Just Energy Transition Partnership (JETP) between the rich countries and the Indonesian government.\u00a0\u00a0<\/p>\n\n\n\n<p><strong>TUED and the Indonesian Energy Unions<\/strong><\/p>\n\n\n\n<p>In mid January 2024, TUED supported a broad coalition of trade unions, academics and public figures that petitioned Indonesia\u2019s Constitutional Court to declare unconstitutional the electricity sector reform provisions in Law Number 6 of 2023.\u00a0\u00a0<\/p>\n\n\n\n<p>Known as GEKANAS, the coalition\u2019s&nbsp;<a href=\"https:\/\/www.mkri.id\/public\/filepermohonan\/Perbaikan%20Permohonan_3245_2787_Perbaikan%20Permohonan%20Registrasi%2039%20PUU%20XXI%202023.pdf\">petition<\/a>&nbsp;reflected concerns that the new law would lead to the \u201cunbundling\u201d of PLN, the public power utility, and increase the role of the for-profit independent power producers (IPPs.) The coalition\u2019s effort is supported by power sector unions, namely:&nbsp;<\/p>\n\n\n\n<ul>\n<li>Serikat Pekerja PT PLN Persero or SP PLN Persero<\/li>\n\n\n\n<li>Persatuan Pegawai PT PLN Indonesia Power or PP-IP<\/li>\n\n\n\n<li>Serikat Pekerja Pembangkat Jawa Bali or SP PJB<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/assets-global.website-files.com\/63276dc4e6b803208bf159df\/65cd42380b819e12acb5aa6e_fKBRNmgfv-kERwqgxtjH2JlumFzG-N2mJgmqD001R6xL7beWZKErlmQ65Fa7klcKcZKdux_DmaEl1KWo0N0REu1Vplm8AhVjLebVZSt85jsxg9ZrWCxVpWaNdPcwX5KtjNkNEcXxYzSK7vC0V0T-r9M.png\" alt=\"\"\/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Article 33 of Indonesia\u2019s Constitution states that the country\u2019s vital resources should be controlled by the Indonesian state. Appearing as an expert witness before the Court in Jakarta, TUED coordinator Sean Sweeney drew attention to the \u201cprivatise to decarbonise\u201d agenda embedded in the\u00a0<a href=\"https:\/\/www.whitehouse.gov\/wp-content\/uploads\/2022\/11\/Joint-Statement-1.pdf.\">Just Energy Transition Partnership (JETP)<\/a>\u00a0between the rich countries and Indonesia. This, suggested Sweeney, lies behind the energy provisions of Law Number 6 which, he said, would \u201ceviscerate Article 33.\u201d A video of Sweeney\u2019s intervention Constitutional Court is available\u00a0<a href=\"https:\/\/www.youtube.com\/watch?v=OR04ai4FneU\">here<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Strings Attached\u00a0<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/assets-global.website-files.com\/63276dc4e6b803208bf159df\/65cd4237eef1354d871a922c_RDMqMBCR6hRgH7hXxGV290zJglyln0RLP_PpbGYxmeuMsQDL3L0TKT9GzTjDDNJtQXwqqP6RiaoUSBjhmV9USU3-Jw3P65Fea32xBQaEqvIWWiDK7WjY7s7SyRtDEYLOay8vR44N8izJKDy-uxGkVXc.png\" alt=\"\"\/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Sweeney told the court that JETP financing from rich countries comes with strings attached, as seen in the South African case. Announced in November 2021, the JETP with South Africa, the first of its kind, set the tone. It states that financing would be\u00a0<a href=\"https:\/\/www.g7germany.de\/resource\/blob\/974430\/2057418\/9a1d62b3c5710b4c1989f95b38dc172c\/2022-06-%2027-chairs-summary-climate-neutrality-data.pdf.\">contingent upon unbundling<\/a>\u00a0of the public utility, Eskom. The JETP\u00a0<a href=\"https:\/\/www.whitehouse.gov\/wp-content\/uploads\/2022\/11\/Joint-Statement-1.pdf\">statement<\/a>\u00a0between the rich countries and the Government of Indonesia called for a \u201cclear strategy for private sector engagement,\u201d detailing \u201cpolicy reforms necessary to address any regulatory barriers.\u201d\u00a0\u00a0<\/p>\n\n\n\n<p>In November 2022, at the G20 Summit in Bali, a group of developed countries\u2014led by the US and Japan\u2014pledged to mobilize US$20 billion over the next 3-5 years to accelerate Indonesia\u2019s energy transition through early retirement of coal power plants and deployment of renewable energy. Currently, the public utility PLN generates about 65% of the country\u2019s electricity, down from 92% in 1990. The presence of IPPs has grown to 35% of generation. The JETP is designed to accelerate the growth of the for-profit IPPs.\u00a0<\/p>\n\n\n\n<p>In Indonesia\u2019s case, the utility PLN is encouraging the growth of IPPs as seen in the PLN\u2019s Electricity Power Supply Business Plan (RUPTL), 2021\u20132030, from October 2021. The World Bank and its regional Asia Development Bank (ADB) \u201cwill simultaneously target pioneering large-scale RE and storage (RE+Storage) projects led by the private sector that will aim to serve demand both in grid-connected and captive power contexts.\u201d\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/assets-global.website-files.com\/63276dc4e6b803208bf159df\/65cd51a1528c381eaf2f6abd_images-87.jpeg\" alt=\"PLN Indonesia Power Tahun 2022 Sukses Catatkan Pendapatan Bersih Rp6,6  Triliun\" width=\"839\" height=\"472\"\/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Why would PLN wish to further undermine its position in the power sector? The RUPTL notes that the World Bank and ADB is \u201cpreparing a results-based lending (RBL) program to support PLN in accelerating Indonesia\u2019s clean energy transition.\u201d\u00a0 Periodic loan disbursements will be contingent upon \u201csatisfactory performance.\u201d The ADB partnership with the Government of Indonesia notes that \u201cADB support will center on policy reforms toward stronger energy sector governance, clean energy and energy efficiency, and private sector participation, while the investment focus will be on sustainable power generation, power transmission systems, and electricity grids.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The JETP, Article 33, and Private Sector Participation\u00a0\u00a0<\/strong><\/h3>\n\n\n\n<p>The designers of the JETP with Indonesia do not want to explicitly confront Article 33, said Sweeney, but the innocuous language of Law No 6, allows for private sector \u201cparticipation\u201d in the electricity system will allow this objective to be achieved via the \u201cback door.\u201d Read the official court\u00a0<a href=\"https:\/\/en.mkri.id\/news\/details\/2024-01-15\/CUNY_Expert:_Article_33_an_Asset_Against_Energy_Crisis\">press release<\/a>\u00a0on Sweeney\u2019s intervention.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/assets-global.website-files.com\/63276dc4e6b803208bf159df\/65cd42375f93c1fc513108f6_U-hDzIzpO4v6g4Kbd5w0XVW3QCoIKx_tVCsQApyXhErV1EnzjMUbwyCjncquYryePtccTwcuRU62gybrYQg4KvSZa9BvWe9O7Oql_C0bIyZzhA66KUt8H96e0OmpOBF7p3R8NnVRURFX00KYr5ozrM8.png\" alt=\"\" width=\"839\" height=\"472\"\/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>In his\u00a0<a href=\"https:\/\/drive.google.com\/file\/d\/1UjzuGsw6382pTuf7nrVQ9kxu5sjR1Xdm\/view?usp=sharing\">written submission<\/a>\u00a0to the Court, Sweeney stated that by 2030, PLN\u2019s role will be reduced to being mainly a buyer of electricity (as the \u201coff-taker\u201d) from privately owned generators. This would mean the state would no longer have control over its electricity system.\u00a0<\/p>\n\n\n\n<p>Released in late November 2023, the Indonesia JETP\u00a0<a href=\"https:\/\/jetp-id.org\/cipp,\">Comprehensive Investment and Policy Plan,<\/a>\u00a0explicitly states: \u201cA PPA [power purchase agreement] should not be treated by its contracting parties as a procurement of a \u2018project\u2019 or an \u2018asset\u2019 that PLN would eventually own but rather as a procurement of electrons.\u201d In other words, electricity will no longer be seen as a public good generated for human development and nation-building; rather, electricity will become a commodity that PLN is legally obligated to purchase from private companies.<\/p>\n\n\n\n<p>Sweeney\u2019s submission also provided data that pointed to the failure of the \u201cblended finance\u201d model that informs the JETP. The $20 billion dollar JETP package would add to the country\u2019s debt obligations while leaving Indonesia to find an additional $97 billion to finance the transition away from coal.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Public Pathway as an Alternative to JETPs<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/assets-global.website-files.com\/63276dc4e6b803208bf159df\/65cd4237fb0956db9fbf5da8_4w1fIuhBZGpPZMDEcFTpYzENTryhWN69ykDEVYW9iUu56UOGt_YMnQllHSpiDbbhR-kp65r5MUhAVQUx0oGW0hHM8bEv4jEHSYSH9rPy7TwvB481_82j09AZ9g7-kUwojvbNnQ__Hd8vDMNs49t9rzA.png\" alt=\"\"\/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Sweeney then explained that Indonesia and other coal-dependent countries in the Global South could pursue an alternative \u201cpublic pathway\u201d approach where state control and public financing can be the drivers of economy wide decarbonisation based on prudent energy planning within a framework of\u00a0<a href=\"https:\/\/www.tuedglobal.org\/bulletins\/beyond-recovery-the-global-green-new-deal-and-public-ownership-of-energy\">global public goods<\/a>.<\/p>\n\n\n\n<p>The need for this policy shift is made evident in the data on global energy trends, he said. These trends indicate that we are witnessing an energy\u00a0<em>transition,<\/em>\u00a0but an energy\u00a0<em>expansion.<\/em>\u00a0Fossil fuel use is\u00a0<em>rising<\/em>, not falling. Greenhouse gas emissions (GHGs) also continue to rise, making the Paris Agreement targets almost meaningless in the short term.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Indonesian Trade Unions Fight Back\u00a0<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/assets-global.website-files.com\/63276dc4e6b803208bf159df\/65cd42379146dcf94bb4274e_Uzx9_MdFy4iqMpwx3_ZXBI1wuooBcGN37P-Y-qTBpkIksJpyp-lPAUSud_-d0mkftG2DWmsg8Qxx80V8QtQcw431GuPvOhJhWAbz1NDAOY03LGL3glVLkVM0O3WeaXJY8_Q9TQ_YOd0jGAyd89XXHjM.png\" alt=\"\"\/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>The Indonesian labor movement and its allies continue to organize in defense of Article 33 and PLN\u2019s role as the principal energy provider.\u00a0<\/p>\n\n\n\n<p>On January 17th, roughly 60 union leaders gathered for a discussion on \u201c Lessons Learned from the Privatisation of Electricity around the World\u201d \u2013 and the Public Pathway alternative.\u00a0<\/p>\n\n\n\n<p>Said\u00a0<strong>Andy Wijaya<\/strong>, the General Secretary of Persatuan Pegawai Indonesia Power: \u201cOnce I was told by a Parliament member that if a State-Owned Company is privatized, the wage would increase sevenfold. I said that currently I am working in PT PLN, and I am paid. But there is no guarantee that my children, my family will be able to get a job at PT PLN that is also well-paid, just like me. Especially if PLN is privatized. I will feel very guilty if in the future, our children will have to pay expensive electricity price because PLN is privatized and I don\u2019t do anything to stop it.\u201d\u00a0<\/p>\n\n\n\n<p>\u201cPublic sector unions play a pivotal role for social justice and public energy that improves people\u2019s lives. Therefore, we need to stay strong in defending public services with pure vigour and use all our powers as unions to keep public energy and services in the hands of the public. Our work with affiliates in Indonesia is to fight againts privatisations and towards a Public Pathway alternative that democratises public services,\u201d said\u00a0<strong>Indah Budiarti,<\/strong>\u00a0Project Coordinator of the PSI Southeast Asia Office and based in Indonesia. Read Budiarti\u2019s insightful\u00a0<a href=\"https:\/\/psisaskenergyprojectindonesia.org\/2024\/01\/19\/analyzing-the-dynamics-of-indonesian-energy-between-governments-subsidy-privatization-and-ecological-sustainability\/\">article<\/a>, \u201cAnalyzing the Dynamics of Indonesian Energy: Between Government\u2019s Subsidy, Privatization, and Ecological Sustainability\u201d.\u00a0<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><em><a href=\"http:\/\/unionsforenergydemocracy.org\/\">Trade Unions for Energy Democracy (TUED)<\/a>\u00a0is a global, multi-sector trade union initiative to advance democratic direction and control of energy in a way that promotes solutions to the climate crisis, energy poverty, the degradation of both land and people, and responds to the attacks on workers\u2019 rights and protections. TUED is is part of the\u00a0Global Labour Institute Network.<\/em>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Broad coalition organises to defend public energy clause in Indonesian Constitution, oppose\u00a0pro-privatisation electricity reforms Following yesterday\u2019s\u00a0elections\u00a0in Indonesia, we turn to the country\u2019s energy sector and the Indonesian labor movement\u2019s fight to defend public energy against the threat posed by the \u201cprivatise to decarbonise\u201d agenda reflected in the Just Energy Transition Partnership (JETP) between the rich &hellip; <a href=\"https:\/\/www.gli-network.net\/?p=4809\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;TUED: Indonesia &#8211; TUED Supports Unions in Constitutional Court Battle to Stop \u201cJETP\u201d Energy Privatisation&#8221;<\/span><\/a><\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[6],"tags":[48,49,17,47,15],"acf":[],"_links":{"self":[{"href":"https:\/\/www.gli-network.net\/index.php?rest_route=\/wp\/v2\/posts\/4809"}],"collection":[{"href":"https:\/\/www.gli-network.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gli-network.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gli-network.net\/index.php?rest_route=\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gli-network.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4809"}],"version-history":[{"count":7,"href":"https:\/\/www.gli-network.net\/index.php?rest_route=\/wp\/v2\/posts\/4809\/revisions"}],"predecessor-version":[{"id":4816,"href":"https:\/\/www.gli-network.net\/index.php?rest_route=\/wp\/v2\/posts\/4809\/revisions\/4816"}],"wp:attachment":[{"href":"https:\/\/www.gli-network.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gli-network.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gli-network.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}