Jakarta, Beritasatu.com – The implementation of Environmental, Social, and Governance (ESG) principles and standards in extractive industry operations is an important thing that must be the primary concern.

“We should no longer build coal fuel smelters when discussing the industry. Because the transition to clean energy will be meaningless if it still uses coal,” said Aryanto Nugroho, national coordinator of the civil society coalition organization Publish What You Pay (PWYP) Indonesia Sunday (23/7/2023).

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Aryanto assessed that until now, Indonesia still needs to overcome the lag in implementing ESG in the extractive industry. He explained that Indonesia must adopt more ESG principles in granting licenses and investment requirements.

“Stir support for ESG implementation and adoption of ESG standards by the government. This is very important in the divestment process,” he said.

Therefore, according to Aryanto, if the divestment process of PT Vale Indonesia’s shares is successful, the commitment to clean energy and the implementation of ESG principles carried out by Vale must be maintained and become the government’s agenda.

“If you want to transition to clean energy, then the use of coal should be stopped,” said Aryanto.

Aryanto also asked the government to be careful in divesting PT VI shares. The government, represented by Mining Industry Indonesia (Mind ID), is advised to pay attention and apply ESG principles that support realizing Indonesia’s transition to clean energy.

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“Do not let the intention to provide benefits result in losses for the community,” he said.

“The benefits of applying ESG principles are long-term, not short-term. It is not just about making a profit, but also includes environmental standards, sustainability, and is part of a fair energy transition,” said Aryanto.

Source: Berita Satu