ILO’s Project on Labour Market Assessment of Indonesia’s INDC: A summary on the CGE modelling and initial results

Event: ILO's Workshop on the Future of Work Initiative: Transformations Affecting the Labor Market in Indonesia
Date: Jakarta, Indonesia, 3 November 2016

IGES was commissioned by the Indonesia Country Office of the Regional Office for Asia and the Pacific (ROAP) of the International Labour Organization (ILO) to conduct a project titled "Assessment of the Labour Market Implications of Indonesia's Nationally Determined Contributions", under the ILO's Green Jobs - INDC Assessment Project. Under its Nationally Determined Contribution (NDC) to mitigate global climate change, Indonesia has pledged to mitigate its GHG emissions unconditionally by 26% by 2020 and by 29% by 2030 against the business as usual (BAU) scenario. Implementation of the NDC will have profound economy-wide impacts on the sectors and the employment. A recursive dynamic computable general equilibrium (CGE) model with detailed presentation of the produciton and consumption of fossil fuels, oil refineries and electricity generation from different energy carries was developed to assess the economic and employment impacts of achieving the NDC target in the energy sector.

Under this background, the purpose of this workshop was to report and validate the preliminary assessment results by inviting relevant governmental organizations including Indonesian Ministry of National Development Planning (BAPPENAS), the Ministry of Environment and Forestry, the Ministry of Manpower and Transmigration and other relevant governmental and non-governmental organisations.