Indonesia’s Energy Transformation Yields 276,000 New Jobs in One Year

KBRN, Jakarta: Indonesia has created more than 276,000 new jobs over the past year through energy and mineral downstreaming projects, Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia said on Sunday, October 26, highlighting the government’s push to boost inclusive growth through skill training and local industry empowerment.

He said that over the past year, pro-people policies in the ESDM sector have produced tangible results, not only in physical infrastructure but also in social and economic empowerment.

“The government is not only focusing on physical development but also on improving social and economic impacts through skill enhancement and local employment,” said Minister Bahlil in Jakarta, on Sunday, October 26, 2025, as quoted by antaranews.com.

He emphasized that the initiative is part of Indonesia’s national economic transformation, which places people at the center of development.

“This transformation is not only changing the structure of our economy but also improving human quality as the main subject of development,” he said.

To achieve this, the ministry has carried out training and certification programs for tens of thousands of workers in the energy and mining sectors. These efforts aim to prepare young Indonesians for the needs of future industries.

“As a result, more than 276,000 new job opportunities have been created through ongoing downstreaming projects,” he added.

The government has also strategically placed energy projects outside major industrial zones to ensure equitable development benefits reaching smaller cities and rural areas.

Programs under the ESDM ministry include vocational training, support for micro, small, and medium enterprises (MSMEs), cooperatives, and regionally owned enterprises (BUMDs).

During his field visits over the past year, he observed that the initiatives have had a direct social impact. “These programs have allowed mothers to sew at night, children to study under bright lights, and fishermen to keep their catch fresh longer,” he continued.

Beyond social gains, the energy sector has also delivered strong fiscal performance. According to the Energy and Mineral Resources Minister, non-tax state revenue (PNBP) from the sector reached IDR 183.3 trillion (about 72 percent of the annual target) by the first half of 2025.

The mineral and coal subsector contributed IDR 100.2 trillion, while the oil and gas subsector accounted for IDR 73.3 trillion.

Investment performance also showed solid growth, with total ESDM sector investment reaching USD 17.20 billion as of August 2025, an 8.5 percent increase from USD 15.85 billion during the same period last year.

Most investments came from the oil and gas subsector (USD 10.22 billion) and mineral and coal subsector (USD 3.80 billion).

The Minister noted that the performance reflects investor confidence in the government’s direction for the energy and mineral resources sector. “President Prabowo has firmly guided the new policy direction in line with the constitutional mandate,” he explained.

He added that these achievements mark two key milestones for Indonesia’s economy, the continued progress of downstreaming projects that increase domestic value-added and strengthened investor trust in the government’s policy stability and long-term strategy for the energy sector ***