Kolonadale – The energy transition is a shift from fossil-based energy production and consumption systems to clean energy that is more environmentally friendly. The purpose of this transition is to reduce the risk of global warming and climate change that could threaten life in the future. The issue of the energy transition is being echoed at the global and national levels and has even become a priority issue raised in Indonesia’s G20 presidency.

Energy transition governance needs to be a common concern in order to prepare an just energy transition process at various levels of society. Therefore, the wider information, capacity building, and access to related information need to be improved. It is expected that various stakeholders can prioritize accountability, transparency, and participation so that they will be able to reduce the risks of the transition, especially at the local level.

On December 28, 2022, in Kolonadale, North Morowali Regency, Central Sulawesi, Publish What You Pay (PWYP) Indonesia together with IDEA Yogyakarta conducted a Workshop on “Institutionalizing Extractive Industries Transparency Initiatives (EITI) at the Local Level Supporting Just Energy Transition in North Morowali Regency” which aims to Increase knowledge, capacity, and awareness of stakeholders on the impact of energy transition and extractive industries at the community level, as well as the importance of just energy transition; Dissemination and follow-up of the study “Community Involvement in Just Energy Transition through EITI Implementation in North Morowali Regency”; Gather input and formulate recommedations on improving natural resource governance and realizing a just energy transition, especially for the community; and Formulate recommendations the opportunities for institutionalizing EITI in the local level.

The hybrid workshop facilitated by Tenti Kurniawati, Executive Director of IDEA Yogyakarta, and Ibrahim Fahmy Badoh, Researcher of PWYP Indonesia, was attended by participants from representatives of the Central Government, representatives of the Central Sulawesi Provincial Government, representatives of the North Morowali District Government, non-governmental organizations based in the Provincial capital, representatives of a number of villages around nickel mining areas such as Tiu Village and Towara Village.

This workshop began with the delivery of a scoping study that emphasized the challenges of mining-producing areas such as North Morowali Regency, in utilizing opportunities for the development and growth of the region through mining activities while seeking improvements in terms of fairer and environmentally sound mining governance, within the framework of a just energy transition. Furthermore, it was conveyed that there is still a gap between the standards contained in the EITI initiative and its implementation at the local level (Province and Regency) in Indonesia, especially in mining-producing areas. Some of the challenges of implementing EITI standards are important in the regions, especially when looking at the context of the needs and impacts felt directly by the communities around the mine, including related to the disclosure of mining company data, information related to mining licenses, mine ownership data, mine management data including 3rd parties (sub-contractors), volume data and mining products, management of mining revenue for the region in the form of revenue sharing funds and how to manage and follow up on the economic, social and environmental impacts of mining activities for the region.

Furthermore, participants were introduced to and discussed the implementation of the EITI initiative in Indonesia and its impact. As well as discussing the importance of involving and increasing the role of women in mining and the importance of institutionalizing EITI at the regional level which can be a way to improve mining governance in the region.

The workshop was very well received by the community as well as government representatives. High enthusiasm mainly arises because they hope that the EITI initiative can be a way to find joint solutions between the community, government, and mining companies related to various problems, especially in terms of overcoming environmental impacts, namely water and air pollution caused by mining activities and the mining processing industry (smelter) as well as environmental problems, involvement of women and children, economic problems and clarity related to the company’s responsibility in overcoming environmental problems as well as in terms of distribution of compensation and CSR funds. Also related to the clarity of government programs such as the Community Empowerment and Development Program (PPM) and the budget formulation of the allocation of revenue-sharing funds.

Participants also welcomed the idea of institutionalizing EITI in the local regions to encourage transparency and accountability in the governance of local resources in this case mining products and the mining products industry on the one hand and on the other hand as a means of involving the community as well as the government and companies in solving problems together. Several programs were also presented as a means to bridge the implementation of corporate obligations and responsibilities, especially related to the child-friendly company association program.

This workshop is part of the “Engaging Communities in a Just Transition through EITI Implementation” program, a collaboration between Publish What You Pay (PWYP) Indonesia and IDEA Yogyakarta with the support of the International EITI Secretariat. This program is to support civil society and local communities to better understand, discuss, address and prepare for the impacts of energy transition in extractive industry-dependent communities in resource-dependent areas.