Prabowo’s pledge to prioritize energy security raises concerns among environmentalists in Indonesia – BenarNews

Environmentalists express deep concern about Indonesia’s ecological future as President-elect Prabowo Subianto has signaled a strong preference for supporting extractive industries and sectors exploiting natural resources.

Prabowo, which will assume the presidency in October, has pledged to continue President Joko “Jokowi” Widodo’s strategy of developing these sectors to realize their full potential by converting forests into plantations to secure food and energy.

“President Joko Widodo has built a strong foundation and I am determined to build on it. Indonesia must be self-sufficient in food and then in energy security,” Prabowo said during a speech at the Qatar Economic Forum last month.

Reducing poverty, he said, requires “a massive campaign and a huge effort.”

“We need to focus on processing our natural resources. We need to put a huge effort into downstreaming and industrialization,” Prabowo said, repeating one of the tenets of his campaign platform.

But this will require heavy reliance on coal to power some of these industries, environmentalists warn.

Below refers to the government’s strategic policy of transforming raw materials into higher-value products before exporting. The policy aims to boost the country’s economy by developing industries that transform natural resources such as minerals, palm oil and other commodities into finished goods.

Environmentalists say rapid industrial development and the risk of increased pollution pose a serious threat to Indonesia’s rich ecosystems.

“The situation in the mining industry may worsen under Prabowo’s presidency,” said Melky Nahar, coordinator of the non-governmental organization Mining Advocacy Network (JATAM).

Melky expressed concerns about potential conflicts of interest, noting the involvement of politically connected businessmen in the incoming government.

Prabowo’s brother, Hashim Djojohadikusumo, is a business tycoon with interests in mining, palm oil, pulp and paper.

“Questions have been raised about the blatant extractive approach under President Jokowi, especially initiatives to divert forested land for industrial purposes,” Fanny Tri Jambore, campaign head of environmental organization Walhi, told BenarNews.

“Mass nickel mining, especially in forest areas, poses a serious challenge to the environment,” he said.

The term “extractive industry” refers to companies that extract minerals and other raw materials from the earth.

Fanny said rising demand for coal, driven by the energy needs of nickel processing plants, could worsen environmental damage across the archipelago.

Nickel processing

The government’s strategy includes selling 21 commodities, including nickel and bauxite, as well as crops such as palm oil.

“The strengthening of Indonesia’s industrial potential, especially in industries dependent on Indonesia’s mineral resources, will continue, intensify, and the sector will scale,” Prabowo wrote in a commentary published by Newsweek. “I am committed to supporting Indonesia towards its goal of becoming a fully developed country by 2045.”

Prabowo said the downstream initiative is expected to require approximately $545 billion in investment.

According to government data, after the ban on nickel ore exports was introduced in 2020, 43 nickel processing plants were established in Indonesia.

Data shows Indonesia’s 2022 nickel mining concessions have expanded to more than 2.47 million acres, with much of it located in forested areas, Fanny added. This represents an increase compared to 2021, further raising concerns about deforestation and habitat loss, Fanny said.

He warned that the nickel industry’s dependence on coal-fired power plants was causing increased coal production elsewhere, thus increasing environmental damage across Indonesia.

Moreover, policies that focus on resource processing reduce the involvement of local communities in managing these resources, he said.

ON Sulawesi Islandthe largest nickel ore production center in Indonesia, there were reports of water and air pollution, deforestation, waste dumping and human rights violations.

Walhi’s data reveals 862 incidents of violence against the community over the past decade, ranging from intimidation and prosecution to physical violence, sometimes resulting in death or loss of social rights.

“This will accelerate environmental degradation, in line with the pattern established under Jokowi. If this pattern continues, the situation will only get worse,” Fanny said.

Batteries for electric vehicles

Indonesia’s nickel industry is largely dominated by companies from China.

Most of the nickel processed at these plants is intended for export, meeting growing international demand for renewable energy solutions, especially batteries for electric cars. Indonesia’s ambition is to become a major electric vehicle production center in Southeast Asia.

Meanwhile, JATAM’s Melky criticized Jokowi’s government for its practice of changing regulations to serve vested interests, particularly the allocation of revoked coal mining permits religious groups.

Jokowi signed the decree last month granting religious organizations the authority to manage mining licenses withdrawn from companies, cit the contribution of these groups to the fight for Indonesia’s independence.

The regulation follows the Jokowi administration’s announcement in 2022 that it was revoking mining and plantation permits covering millions of acres because development was progressing too slowly.

“This practice of evading regulations worsens the situation by allowing continued mining activities across Indonesia,” Melky said.

Climate goals

The government has set ambitious climate goals, including: reducing greenhouse gas emissions by 2030 by almost 32% compared to the business-as-usual scenario as a result of national efforts and by 43.2% with international support.

Mahawan Karuniasa, an environmental analyst at the University of Indonesia, said that given Indonesia’s dwindling non-renewable resources and looming energy shortage, it is important for the country to focus on later stages of production such as processing and distribution.

“Nickel represents Indonesia’s hope because the country has traditionally been just a market,” he told BenarNews.

“We must ensure that environmental considerations do not infringe on Indonesia’s sovereignty in managing our natural resources, especially due to foreign entities that want Indonesia not to engage in downstream activities,” he said.

“Therefore, there is no choice but to proceed.”

Last year, in a speech to the People’s Consultative Assembly, Jokowi said his government was committed to a sustainable approach to downstreaming, emphasizing the use of renewable energy and reducing environmental impact.

According to Sufmi Dasco Ahmad, a senior official of the president-elect’s Gerindra Party, Prabowo has maintained this commitment.

“The downstreaming policy will be subject to comprehensive environmental impact assessments, taking into account the technology and environmental protection measures used,” Sufmi told BenarNews.