Govt Initiates National ESG Standard for Mining Sector
Indonesia’s Ministry of Energy and Mineral Resources (ESDM) and Ministry of Foreign Affairs are initiating a national Focus Group Discussion (FGD) on August 14, 2025, to establish national Environmental, Social, and Governance (ESG) standards for the mining sector, aiming to boost international competitiveness and market access.
The event itself signifies a significant national policy initiative to develop national ESG standards within the mining sector. This undertaking aims to address global demands for ESG principles and secure international recognition for Indonesia’s sustainable mining practices.
The sources indicate a focus on Indonesia’s strategic role in critical minerals, such as nickel, due to drastically increasing global demand for emission reduction and digital technologies.
The initiative is a key objective is to counter accusations of “dirty nickel” and foster international recognition of Indonesia’s ESG commitment.
This national initiative is driven by several market, regulatory, and macro factors, including the ongoing dispute with the European Union at the WTO (DS592) regarding raw material measures. Furthermore, the UN Secretary-General’s Panel on Critical Energy Transition Minerals (CETM) recommends managing critical minerals with equality, justice, human rights, and environmental protection in mind. International dialogues like the BRICS Summit 2025 in Rio de Janeiro and the Critical Raw Minerals Producing Countries (CRM) Dialogue in Jakarta have also underscored the importance of cooperation on critical minerals and ESG principles.
Indonesia has prior successful experiences in developing and implementing internationally recognized sustainable standards for key commodities, including Indonesian Sustainable Palm Oil (ISPO), Sistem Verifikasi Legalitas Kayu (SVLK) for timber, and Sistem Ketertelusuran dan Logistik Ikan Nasional (STELINA) for fisheries.
Nationally, Indonesia is transitioning from Rotary Kiln Electric Furnace (RKEF) to more environmentally friendly High Pressure Acid Leaching (HPAL) processing methods and developing Sistem Informasi Mineral dan Batubara Kementerian/Lembaga (SIMBARA) for mineral traceability.
The FGD on August 14, 2025, serves as a crucial step to explore the potential for developing a sustainability certification standard for the mining sector, aiming to enhance the added value, competitiveness, and international market access of Indonesian mining products. This event will facilitate discussions and best practice sharing for future implementation.
