Indonesia Projected to Create Nearly 3.9 Million Green Jobs by 2026

Indonesia’s green economy is projected to create nearly 3.9 million jobs by 2026, according to a forecast by TV BRICS, a Russian state-funded news network covering emerging economies. The estimate highlights the Southeast Asian nation’s push to expand renewable energy, sustainable agriculture, and low-carbon industries amid global climate commitments.

The figure—3.88 million jobs—comes as Indonesia accelerates its Just Energy Transition Partnership (JETP) with the G7 and aims to reach net-zero emissions by 2060. The forecast suggests that green investments could offset job losses in fossil fuels while boosting sectors like electric vehicle manufacturing, solar power, and reforestation.

Indonesia’s green economy targets 3.9 million jobs by 2026—what sectors will drive growth?

The jobs forecast is tied to Indonesia’s $20 billion JETP deal, announced in November 2022, which includes funding for coal-phaseout support and renewable energy expansion. Key sectors expected to lead hiring include:

• Renewable energy: Solar and wind projects could add 1.2 million jobs by 2026, per Indonesian Ministry of Energy data.
• Electric vehicles (EVs): The government’s 2025 EV mandate for domestic carmakers may create 800,000 jobs in battery production and assembly.
• Sustainable agriculture: Reforestation and palm oil sustainability programs could generate 600,000 jobs, according to the World Bank.
• Green construction: Retrofitting buildings for energy efficiency may support 500,000 roles, aligned with the National Medium-Term Development Plan (RPJMN).

Why Indonesia’s green jobs forecast matters—compared to other emerging economies

Indonesia’s projection surpasses similar forecasts in Vietnam (2.1 million green jobs by 2030) and India (1.5 million by 2030), according to International Labour Organization (ILO) data. The difference stems from Indonesia’s abundant nickel reserves—critical for EV batteries—and its coal-dependent energy mix, which requires rapid transition.

However, challenges remain. The Indonesian Chamber of Commerce (KADIN) warns that skills gaps in renewable technologies could limit job creation. A 2023 World Economic Forum report noted that only 30% of Indonesians currently have the technical training needed for green roles.

What comes next for Indonesia’s green economy—government timelines and investor reactions

The Indonesian Ministry of Investment has set 2025 as the deadline for finalizing green industrial parks, which will host EV and solar manufacturers. Foreign investors, including South Korea’s LG Energy Solution and China’s BYD, have already pledged $10 billion in green projects.

Yet, critics argue that coal still accounts for 60% of Indonesia’s energy mix, slowing the transition. The Climate Action Tracker rates Indonesia’s current policies as "highly insufficient" to meet its 2060 net-zero pledge.

Key sources and official statements

• TV BRICS (June 23, 2024): Original jobs forecast of 3.88 million by 2026.
• Indonesian Ministry of Energy: 1.2 million renewable energy jobs target.
• World Bank: 600,000 jobs in sustainable agriculture.
• International Labour Organization (ILO): Comparable forecasts for Vietnam and India.
• World Economic Forum (2023): 30% skills gap in green workforce readiness.
• Climate Action Tracker: Assessment of Indonesia’s net-zero progress.

How readers can follow updates
For the latest on Indonesia’s green economy policies, track:

• Ministry of Energy & Mineral Resources (www.esdm.go.id)
• Investment Coordinating Board (BKPM) (www.bkpm.go.id)
• World Bank Indonesia (www.worldbank.org/id)