Study of PAGE in Indonesia

Assessment of jobs and skill needs in the electric vehicle value chain

This study, carried out within the framework of the ILO’s support for the Government of Indonesia under the Partnership for Action on Green Economy (PAGE), presents a summary assessment of EV industry development implications and of its value chain, for four and two wheelers, analysed through employment lenses.

This report shows that the observed short-term employment impact of the EV transition is positive as the emerging EV sector is creating employment and minimum disruption to the ICEV industry due to the slow pace of adoption. EV stakeholders are also optimistic that the transition can be managed and will not create adverse employment impacts unless a rapid transition is implemented without allowing the industry to create a firm domestic foundation.

This view is aligned with available quantitative projections such as the PAGE and CORE model (2024) that anticipates employment growth due to increased production capacity, and BCG (2020) that projects no significant changes in total labour hours in the automotive chain but expects a shifting between the links in the chain. In other words, the EV transition needs long-term workforce planning that considers substitution impacts and skilling strategies that help affected workers be reassigned within the industry or enter another one.

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