Jakarta, 18 December 2025 – Climate Policy Initiative (CPI) today launched a new report titled “Operationalizing JETP Just Transition Standard 9 in Maluku,” as part of the JETP Just Transition Thematic Report. The report provides a practical and detailed blueprint for applying the Just Energy Transition Partnership (JETP) Standard 9 on economic diversification and transformation in remote communities undergoing energy transition.

The study focuses on Air Buaya and Pasir Putih villages in Maluku, two locations included in Indonesia’s national de-dieselization program. It presents operational approaches that ensure renewable energy deployment is accompanied by improved livelihoods, stronger local economies, and inclusive development outcomes. Standard 9 emphasizes the need for economic resilience during the transition away from fossil fuels. CPI’s study illustrates how the principle can be implemented through models that support workers, expand productive uses of energy, and unlock new economic value.

Key Findings from the Report:

• Communities in Maluku are facing both energy reliability challenges and missed economic opportunities due to reliance on diesel generators and limited access to stable electricity.
• In Air Buaya, 18 diesel plant workers face job transition risks, yet most are willing to reskill for renewable energy roles.
• In Pasir Putih, limited ice-making capacity and unreliable electricity restrict the productivity of the village’s tuna fishery sector. By replacing diesel with renewable energy to power the cold chain systems, daily income for active fishers could increase significantly from IDR 43 million to IDR 368 million. The total annual revenue of IDR 53 billion outweighs the IDR 10 billion cost of the transition itself.
• Financial institutions, including public banks and philanthropies, can play a catalytic role by deploying grants, guarantees, and risk-sharing mechanisms to scale renewable energy-powered infrastructure.
• Tailored interventions that address social inclusion, gender gaps, and youth out-migration are essential for long-term just transition success.

For the workforce in Air Buaya, the report proposed the Self-Sustaining Workforce Transition Model with an Integrated Knowledge Platform that is designed as a centralized, long-term mechanism to support the development of skilled labors for renewable energy deployment. The platform would be administered primarily by PLN, with participation from Independent Power Producers (IPPs) through structured collaboration agreements.

The report further prescribed a Phased Operationalization Strategy that includes catalytic grants, derisking instruments for high-risk areas, and derisking instruments for moderate-risk areas, to develop renewable energy-powered cold chain infrastructure in Pasir Putih. The three phases are designed to progressively transition the local fisheries economy from donor dependence toward market-oriented financial sustainability. The report also details how local governments, development partners, financial institutions, technical experts, and local communities can collaborate to ensure long-term sustainability.

“Indonesia’s energy transition can only succeed if it brings real economic gains to communities. Our findings from Maluku show that renewable energy is not only a technical solution but also a pathway to stronger local economies and more resilient livelihoods,” said Tiza Mafira, CPI Indonesia Director. “Standard 9 guides us to place people at the center of the transition. By aligning workforce retraining with renewable energy deployment and mobilizing phased financing for productive-use infrastructure, we can ensure that communities are empowered to not just adapt but thrive through the transition,” concluded Tiza.

Read the full report to learn more: https://www.climatepolicyinitiative.org/publication/operationalizing-jetp-just-transition-standard-9-in-maluku/