ESDM Strengthens ESG Standards for Mineral and Coal Sector

The Ministry of Energy and Mineral Resources (Energi dan Sumber Daya Mineral – “ESDM”) is currently preparing a draft of Environmental, Social, and Governance (“ESG”) standards for the mineral and coal mining sector. This draft standard is being developed for the entire sector, including critical and strategic minerals.

Susana Reni Ertanti, Sub-Coordinator of the Mineral Investment and Cooperation Development Working Group, Directorate of Mineral and Coal Program Development, Directorate General of Minerals and Coal, Ministry of ESDM, emphasized that these standards are designed to serve as global indicators contextualized for operations within Indonesia.

"The ESG standards we are formulating are not intended to rival international standards; rather, we aim to adopt and implement international standards," stated Reni.

The draft standard encompasses three key pillars: environmental, social, and governance. The compliance assessment system is structured in a tiered manner, ranging from basic to intermediate and advanced levels, to allow for phased implementation across all business scales, including small-scale mining operations.