JakartaPost-Apr 4, 2024
Government efforts to capitalize on Indonesia’s rich mineral resources through downstream industry development may falter if there is no push to tap renewable energy sources, analysts and environmental activists warn. Industry players feel under pressure to shift to renewable energy for their operations and have expressed their readiness to do so, but they say it is difficult in many regions. They urge the government to help develop renewables in parts of the country that lack so-called green energy, as well as to lobby other countries to continue accepting their products during the transition period. Adaro Minerals Indonesia, a subsidiary of Indonesia’s second-largest coal mining company Adaro, stated that its nonbinding memorandum of understanding (MoU) with South Korean carmaker Hyundai expired at the end of last year. Aluminum is an essential material in automotive manufacturing. Hyundai confirmed the decision not to renew the MoU while stressing its commitment to responsible and sustainable sourcing of materials. Nabilla Gunawan, a campaigner from environmental group Market Forces, opined that the discontinuance of the MoU related to the automaker’s pledge to reach net-zero carbon emissions in its entire supply chain by 2045. Another climate advocacy group, Cerah, said Hyundai may seek to discontinue sourcing aluminum from smelters that use coal as a power source and added that pressure to end fossil fuel use was also felt by miners of other commodities. Ahmad Zuhdi Dwi Kusuma, a mining sector expert at government-owned Bank Mandiri, explained that there were no clear metrics to assess whether the investment appetite for Indonesian mining operations had been negatively affected by the energy transition issue. However, carbon emission reduction has become one of the key considerations for prospective investors, he added. Read more at: https://www.thejakartapost.com/business/2024/04/04/lack-of-clean-power-jeopardizes-indonesias-downstream-dream.html
