Just Energy Transition: Corporate Responsibility for Post Mining Environment and Economic Recovery

Jakarta,  24 January 2024 – Energy has become our primary need. Therefore, transitioning from fossil to renewables will impact the livelihood of every community. Institute for Essential Services Reform (IESR) believes in an inclusive and just energy transition for Indonesia, that will involve every single community in the process. 

Coal and mining industry had been the biggest economic contributor for coal producing regions. However, many have predicted the energy trends for coal will soon decrease and will also impact coal demands from Indonesia. 

“Coal and mining sectors do contribute to regional economic growth, especially through the revenue shared fund. Nevertheless, this sector also contributes to the negative impacts, not only to our environment, but also to the people. Coal corporations should be involved in a just transition, both in coal producing regions and other regions,” said Wira in his opening remarks in The Just Transition Dialogue: Identifying the private sector role within social and economic development, Jakarta (24/01).

According to Wira, corporations should play their role to reduce the negative impacts through reclamation, post mining activities and community development to ensure the continuity of economic activities after the coal mines have been closed. 

Sulistiyohadi, Associate Mining Inspector/Coordinator of Civil Servant Investigator Mineral and Coal presented reclamation activities that took place since the exploration and production phase. In addion to that, post mining activities have been submitted since the production phase. He further explained several reclamation techniques, including land utilization, revegetation and land maintenance.  

“There are several activities to rehabilitate voids from mining activities, including slope stabilzation, mine void security, rehabilitation of water quality, water management and the maintenance of mine void,” said Sulistiyo.

Thriving to be one of the post mining activities case study, Yulfaizon, the General Manager of PT Bukit Asam Ombilin Mining Unit shared their experience to ensure the mining region can be useful for the environment and communities. Ombilin mine was the oldest mine in Indonesia, operating since 1892 during the Dutch Colonization and was retired in 2016.

Yulfaizon shared several post mining activities that were conducted by PT Bukit Asam, including: development of Sawahlunto Zoo, Establishing a research site of underground coal mining, and Lobang Mbah Soero Museum.