Historically, mining activities have been linked to environmental degradation, including deforestation, water pollution, and biodiversity loss. These adverse effects often led to protests by local communities and environmental organizations. Social conflicts frequently emerged in areas where natural resource exploitation marginalized local residents.
Despite these challenges, the mining sector has been vital to Indonesia’s economy, contributing significant state revenues and generating employment opportunities. However, as the world shifts towards cleaner energy, the demand for critical minerals has surged, positioning Indonesia as a key player in the global energy transition.
Indonesia’s Strategic Role in Critical Minerals
The Indonesian Ministry of Energy and Mineral Resources classifies critical minerals as essential for economic development but prone to supply disruptions and lacking viable substitutes. Nickel, lithium, and cobalt are among these minerals, playing crucial roles in electric vehicle (EV) batteries and renewable technologies such as solar panels and wind turbines.
At IISF 2024, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan emphasized Indonesia’s strategic position in the critical minerals supply chain. With abundant nickel reserves and rare earth elements, the country has the potential to lead sustainable mining efforts globally.
Pandjaitan urged Indonesia to transition from being a raw material supplier to a pioneer in responsible mining. Bernardus Irmanto, Director and Chief Sustainability Officer of PT Vale Indonesia, echoed this sentiment, stressing the importance of managing these resources responsibly to maximize long-term economic, social, and environmental benefits.
Cross-Sector Collaboration: A Key to Sustainability
Sustainable critical mineral management requires partnerships across sectors, particularly with technology industries. Indonesian mining companies often lack the advanced technologies needed for efficient and eco-friendly operations.
Kata Kunci : Momentum for Sustainable Critical Mineral Management at IISF 2024
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