Takeaways from Ford Foundation Partners Meeting:

Issues to be Discussed by PHR-PHR HuMa in Villages and Campuses

Regarding Energy, Mining, and Just Transition of Energy

 

On April 23-26, 2024, HuMa attended a meeting with Ford Foundation partners which consisted of a series of dialogues related to energy management, mining, and energy transition. The discussion was attended by speakers from various backgrounds: Bappenas, represented by Medrilzam; Directorate General of EBTKE of the Ministry of Energy and Mineral Resources represented by Hendro Gunawan; Drajad Wibowo; representatives of various CSOs including Article 33, Prakarsa Association, Fitra Riau, PWYP Indonesia, Amnesty International Indonesia, Core Indonesia, AEER, Auriga Nusantara, Djokosoetono Research Center, Climate Policy Initiative, Trend Asia, Coaction Indonesia, ICEL, The Habibie Center; and academics from UGM such as Prof. Purwo Santoso, Hasrul Hanif, Sarjiya.

From various discussions held over 4 days, there are several issues that need to be considered by civil society, including PHR HuMa on campuses and in villages, as it will be related to the protection of indigenous and local community rights:

1. First, we need to demand that the critical minerals industry that is being accelerated in Indonesia takes into account the social and environmental impacts. Critical minerals are minerals considered essential for the development of future national technology and economy, especially for new renewable energy sources. In Indonesia, the critical minerals produced and exported include nickel, tin, copper, and bauxite. The central and regional governments need to be encouraged to be more aware and firm in monitoring the social and environmental impacts of this industry. For example, in the case of nickel, the booming nickel mines should not trigger deforestation and land grabbing. Additionally, labor rights protection in the nickel industry should not be overlooked. Water pollution around industrial areas, as well as poverty rates in nickel-producing regencies, also need attention. Indigenous territories and natural forests should be excluded from the development of this industry.

 

2. Second, we need to be clear in defining and demanding a just energy transition. The energy transition demanded by civil society must be just, benefitting everyone including minorities and vulnerable groups, and should not involve new exploitation. Currently, one of the government’s flagship programs for energy transition is co-firing coal-fired power plants. In short, to reduce the amount of coal burned in power plants, coal is burned together with natural materials such as wood, palm shells, waste, and others. These materials are called biomass. However, in reality, there is a threat of deforestation and/or new land conflicts with indigenous/local communities for the supply of these biomass materials.

 

3. Third, downstreaming in the mining and energy sector is predicted to be one of the main focuses of the upcoming government. Downstreaming is often mentioned in the presidential and vice-presidential debates in the 2024 Presidential Election. Downstreaming means the process of processing products from raw materials into more valuable products or ready to be sold to consumers. The way downstreaming is done varies depending on the type of mineral. For nickel downstreaming, which is booming in Indonesia, it is done by building smelters. These smelters can transform nickel ore mined from our land into nickel ferro products (for steel) and nickel matte (for batteries).

There are several things to consider in facing the increasing enthusiasm for downstreaming, especially its impact on deforestation, land grabbing from indigenous/local communities, and environmental pollution. Research by Auriga Nusantara