A worker inspects solar panels installed on the roof of Santika Premiere Hotel in Palembang, South Sumatra, on July 7, 2021. (Antara Photo/Nova Wahyudi)

Green Investments Create 10 Times More Jobs than Conventional Ones: Gov't


FEBRUARY 08, 2022

Jakarta. Green investment can create up to ten times more jobs than conventional ones, but mainstreaming green jobs are not without its challenges, according to the National Development Planning Agency, or Bappenas.

“Investment in green economy is estimated to create 7 to 10 times more jobs than conventional investment, mainly because the jobs in the green sector are more labor intensive,” Mahatmi Parwitasari Saronto, the manpower director at Bappenas, told a virtual conference on green jobs on Tuesday.

Mahatmi also attributed these new jobs to the intervention in renewable energy, electric vehicle technology, energy efficiency, waste management, among other things. Despite its great potential, mainstreaming green jobs can be quite a challenge. Indonesia has even yet to define what exactly are green jobs.

“There is still a very limited understanding of green jobs. There is not yet an agreed definition to be used consistently, especially in policymaking,” Mahatmi said. 

“Why is definition crucial? Because in Indonesia, we still don’t know what a ‘green job’ is. We often hear the term ‘green jobs’, but we don’t know the components that make up green jobs,” she said, while adding that its definition is crucial for green job growth statistics in Indonesia.

Shortage of relevant skills is another obstacle in green job mainstreaming. Education and training that are dedicated to equip workers with green skills are also still severely lacking in quality and quantity, according to Mahatmi.

“The enhancement or even the mainstreaming of green jobs has become a strategic opportunity, but at the same time a challenge for Indonesia,” she said.

A Helping Hand

Indonesia is not alone in its efforts to promote green jobs. 

Bappenas is working closely with German development agency Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in a green employment project, namely the Innovation and Investment for Inclusive Sustainable Economic Development (ISED). 

GIZ official website shows that the ISED focuses on promoting green employment in the renewable energy sector from 2021 to 2024.

According to German ambassador to Indonesia Ina Lepel, Germany will assist the world’s largest archipelagic country in formulating policies to promote green jobs. This includes mapping existing green jobs, developing vocational standards, as well as recruitment based on green skills, Ina told the same conference.