Nationalism is often intertwined with issues of natural resource management, but its implementation frequently neglects humanitarian aspects.
NATIONALISM is almost always embedded in discussions surrounding Indonesia’s energy and natural resource sectors. Throughout history, nationalism has consistently underpinned policy-making and debates on governance in these sectors.
Historical records show that nationalism has significantly shaped the direction and policies of energy and natural resource governance, both domestically and internationally. However, in practice, nationalism is often reduced to fragmented applications within public discourse and policy implementation in these sectors.
The debate on nationalism is frequently confined to ownership—whether of shares in major concession-holding companies or the status of companies managing natural resource concessions. For example, the government’s majority ownership of PT Freeport Indonesia or the transfer of Mahakam Block management in East Kalimantan from Total E&P Indonesie to PT Pertamina (Persero) is framed as nationalization of assets and a demonstration of nationalism in the energy and natural resource sectors.
Similarly, debates surrounding the enactment of Law No. 22/2001 on Oil and Gas centered on Pertamina’s diminished authority. Once a regulator, operator, and supervisor of contractors under cooperation contracts (KKKS), Pertamina was relegated to being merely a KKKS. Some viewed this as a betrayal of nationalism. Conversely, the prioritization of state-owned enterprises (SOEs) and regional government-owned enterprises (BUMDs) for mining permits under Article 75 of Law No. 3/2020 on Mineral and Coal Mining was celebrated as a nationalist policy—although subsequent regulations, such as Government Regulation No. 25/2024, diluted its intent.
False Nationalism
In practice, the application of nationalism in energy and natural resource governance is far from comprehensive. It is limited to these domains, overlooking broader humanitarian considerations. True Indonesian nationalism stands on two pillars: patriotism and humanitarianism. Nationalism based solely on patriotism risks descending into chauvinism, while nationalism rooted only in humanitarianism lacks identity.
This dual essence of Indonesian nationalism is implicitly enshrined in Pancasila and the 1945 Constitution, which serve as foundational principles for governance. However, humanitarian aspects are often forgotten—or worse, abandoned—under the guise of investment, state revenue, or economic development.
This oversight has led to human rights violations, environmental degradation, and the dispossession of community livelihoods, perpetuating poverty. Weak oversight exacerbates these issues, as evidenced by mining operations in Southeast Sulawesi’s Wawonii and Kabean islands.
A July 2024 report by the Business & Human Rights Resource Centre, “Powering Electric Vehicles: Human Rights Impacts of Indonesia’s Nickel Rush,” highlighted the adverse effects of mining in these areas, including deforestation of 76,030 hectares of endemic rainforests, pollution of water supplies, and disruption of indigenous lifestyles and fragile marine ecosystems.
Ironically, regions rich in energy resources often remain entrenched in poverty. Statistics from Indonesia’s Central Bureau of Statistics (BPS) reveal rising poverty rates in nickel-rich areas like Central Sulawesi, where poverty increased from 12.30% in September 2022 to 12.41% in September 2023.
The Call for Reform
UN Secretary-General António Guterres, in his speech launching the Energy Transition Critical Mineral Panel, emphasized the world’s increasing demand for critical minerals like copper, lithium, nickel, cobalt, and rare earth elements to support a fossil-free energy transition. This shift places global attention on Indonesia, which holds the world’s largest nickel and tin reserves.
However, without reform in resource governance, this energy transition could exacerbate existing humanitarian challenges. The time has come to revisit and reflect on nationalism’s role in the management of energy and natural resources.
Energy transition must go beyond shifting from fossil fuels to renewables; it should also serve as an opportunity to improve governance—particularly by integrating humanitarian principles.
During the National Conference on Energy and Natural Resource Governance in the New Administration Era in September 2024, Publish What You Pay Indonesia championed the principle of “people before profit” in energy and natural resource management. This principle calls for prioritizing humanitarian values and ensuring their integration into governance frameworks.
Adopting people before profit could address the persistent shortcomings of governance that undermine both nationalism and humanity. Resource management should not be reduced to economic exploitation but should embrace holistic humanitarian principles. After all, Indonesia was founded not merely on national unity but also on humanity.
Isn’t resource exploitation that disregards humanitarian interests a modern form of colonialism?
Once again, people before profit!
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