NIKEL.CO.ID, 24 JULY 2023 – The National Coordinator of the civil society coalition organization Publish What You Pay (PWYP) Indonesia, Aryanto Nugroho, reminded the government to be careful in carrying out the divestment process of PT Vale Indonesia (PTVI) shares on Friday, (21/7/2023).
In this case, the government, represented by Mining Industry Indonesia (Mind ID), in the divestment process, is advised to pay attention to and implement the principles of Environmental, Social, and Governance (ESG), which support the realization of a clean energy transition in Indonesia.
“Do not want to provide benefits; instead, the divestment (PT Vale Indonesia) will cause harm to the community,” said an observer of extractive industry issues, Aryanto, through a press release from nickel.co.id, Monday (24/7/2023).
According to him, as one of Indonesia’s pioneers of the nickel industry, Vale is a company committed to applying clean energy.
“Therefore, if the Vale share divestment process is completed, the commitment to clean energy and the application of ESG principles that Vale has carried out must be prioritized and become the government’s agenda,” he said.
“If you want an energy transition, coal energy no longer needs to be used,” he continued.
Aryanto assessed that so far, Indonesia still needs a lot to catch up on the implementation of ESG in the extractive industry. Indonesia still has to apply more ESG principles in granting licenses to investment requirements.
“Support the implementation of ESG, then ESG standards are adopted by the government. That is an important thing in the divestment process,” he explained.
He also revealed that there should be no more setbacks in applying ESG in various government lines, including the extractive industry.
“Don’t build more smelters that use coal fuel when discussing industry. Because the transition (clean energy) becomes false because there is more coal,” said Aryanto.
President Joko Widodo, on the occasion of the inauguration of the Sawerigading Wallacea Biodiversity Park in the Vale Mine area at the end of March, stated that mining companies in Indonesia should be able to emulate what Vale is doing.
In addition, the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, praised Vale’s management capabilities during his visit to Vale’s nickel mine and smelter in Sorowako, South Sulawesi, in late November last year.
“Vale has implemented good mining practices,” Luhut said.
Aryanto again said that ESG in the operation of the extractive industry is an important thing that must be considered.
So far, Vale has affirmed its commitment to implementing international ESG standards in nickel processing operations.
“The benefits of ESG are long-term, not short-term, meaning that it is not just about profit, but environmental standards, sustainability, and this is part of the equitable energy transition,” he concluded. (Shiddiq)
Source: Nickel.co.id