JakartaGlobe-July 29
Businesses in the mining sector are committed to achieving net zero emissions (NZE) within their operations. However, realizing this ambitious target comes with several challenges.
Anggawira, Chairman of the Indonesian Energy, Mineral, and Coal Suppliers Association (Aspebindo), said that there are significant obstacles hindering implementation on the ground. “The main challenge lies in the gap between vision and on-the-ground realization. Normatively, the mining sector is committed to the energy transition, but implementation is still hindered by several factors,” Anggawira said on Monday. First, the issue lies in technology and infrastructure. Many mining companies don’t have access to affordable low-carbon technologies. For example, the use of diesel-based heavy machinery, coal logistics systems, and mineral processing remains heavily reliant on fossil fuels. Second, there is a lack of sufficient economic incentives. Anggawira noted that businesses struggle to move forward without fiscal schemes that make energy transition investments competitive. Tax incentives for renewable energy use or carbon offsets, for instance, have yet to be fully optimized. The third challenge is regulatory inconsistency. He pointed out that certain environmental and energy regulations are overlapping or misaligned. “For example, companies are expected to reduce emissions, but they aren’t given the ease of permits for solar power installations at mining sites or post-mining reforestation,” Anggawira explained.
Lastly, access to green financing remains a hurdle. According to Anggawira, not all mining companies — especially small and medium-sized ones — can access green financing or Environmental, Social, and Governance (ESG) funds due to complex requirements that often favor large corporations.
Therefore, he urged all stakeholders, including the government and business players, to remain committed and find concrete solutions to achieve NZE targets, especially in the mining sector. The green economy roadmap that has been developed must also be properly implemented. “We cannot talk about net zero in mining using a moralistic approach. It must be realistic, data-driven, and accompanied by economic incentives. The transition should be designed as a new business opportunity, not as a burden,” he concluded. Read more at:
