This document discusses sustainable mining in Indonesia. It defines sustainable mining as maximizing economic benefits from mining projects while also improving environmental and social outcomes. The document outlines some efforts in Indonesia to promote sustainable mining, but notes ongoing challenges around stakeholder engagement and measuring intangible impacts. It emphasizes the importance of community engagement to build trust and ensure mining addresses local issues and preferences.

1. Rezki Syahrir
Indonesian Institute for Sustainable Mining
Sustainable Mining, from Idea to Reality

2. Contents
• Introduction
• Issues on Sustainable Mining
• Current situation of Sustainable Mining in Indonesia
• Community Engagement and Sustainable Mining
• Towards Greater Sustainable Mining in Indonesia

3. Introduction
• Why Sustainable Mining and Why it is urgent?
• Sustainable Development in mining industry

4. Why Sustainable Mining?
• Viability of Mining Sector
– Mining industry concerns that its future is largely determined by
their achievement on sustainable development.
• The need to generate maximum contribution to society
– Mining operation should meet social expectations and share the
responsibilities with stakeholders.
 Communities better understand their rights and placing more
demand on governments and companies to ensure fair benefits from
mineral activities.
• Net value should be positive
– Tangible and intangible

5. Why Sustainable Mining is Urgent?
• Mining is a temporary land use.
• Increasing demand of minerals to support
human life.
• Response of challenges faced by the industry:
– Land access
– Social problems
– Market access
– Financial access
Reputation of
Mineral Industry
HOW?

6. Sustainable Development in Mining Industry
• Emphasized on the optimization of positive impacts
with the concern to the integration of economic, social
and environmental pillars
Sustainability Focused on the in efforts mining to does maximize not mean the an benefits individual
of
mining mine should projects be operated while in the eternally, same time but to how improve the
the
environmental industry can contribute and social to sustainability
sustainable development

7. Sustainable Development in Mining Industry
• Sustainability in mining does not mean an
individual mine should be operated
eternally, but how the industry can
contribute to sustainable development
• Focused on the efforts to maximize the
benefits of mining projects while in the
same time to improve the environmental
and social sustainability
• Emphasized on the optimization of positive
impacts with the concern to the
integration of economic, social and
environmental pillars

8. Issues on Sustainable Mining
• Key challenges facing Mineral Sector
• Three priority areas to ensure sustainability in mining
sector
• Toward Sustainable Mining

9. Key challenges facing the Mineral Sector
• Viability of the mineral industry
• The control, use, and management of land
• Minerals and economic development
• Local communities and mines
• Mining, mineral, and environment
• An integrated approach to using minerals
• Access of information
• Artisanal and small-scale mining
• Sector governance: roles, responsibilities, and instruments

10. Three priority areas to ensure sustainability in
mining sector (JPoI 2002):
• Address the environmental, economic, health and social
impacts and benefits of mining throughout their life
cycle
• Enhance the participation of stakeholders
• Foster sustainable mining practices through the
provision of financial, technical and capacity-building

11. Toward Sustainable Mining
benefits
impacts
Contributions

12. Toward Sustainable Mining
Government
agencies
Mining
Stakeholders
Non-government
organizations
(NGO's)
Local
Community
Politicians
Financial
institutions
Labour unions
Commercial &
industrial
enterprises
Environmental
groups
Religious and
traditional
groups
Media
Engagement

13. Current situation of Sustainable Mining in
Indonesia
• Efforts to Maximize Mining Contribution to Sustainable
Development
• Challenges of Sustainable Mining implementation

14. Efforts to Maximize Mining Contribution to
Sustainable Development in Indonesia
• Government
– Export ban for unprocessed minerals
– Domestic market obligation for mined
Coal
– Public consultation on EIAs and Mine
Closure Plan
• Mining Firms
– Membership association (ICMM, MAC)
• Civil Society
– NGOs
• Indigenous People
– Dayak Indigenous Council
• Emerge as response to the
proliferation of mining‘s negative
impacts and misfortune of abandoned
mined sites
• Critics directed towards the regional's
development dependence on mining,
questioning the fate of the regions
after the mine being closed
Questions:
• How are the stakeholder engagements?
• How are the intangible values?
• Are these sufficient to lead to net positive value?

15. Challenges of Sustainable Mining
implementation in Indonesia
• Understanding of sustainable mining
• Lack of stakeholders capacity
• Missing public report and parameters of sustainable
mining achievement
green mining or responsible mining

16. Community Engagement and
Sustainable Mining
• What is Community Engagement and to what extend it
may encourage mining to be more sustainable
• Community Engagement (in a form of Public
Consultation) in the early stage of Mining, a Case Study
• Lessons learned from the experience:
– Involved Stakeholders in the Community Engagement
– Participants Characteristic and Distribution
– Main Issues and Level of Concern
– Community Preferences

17. Community Engagement and to what extend it
may encourage mining to be more sustainable
• Community engagement is a process of involving community in
problem solving or decision making, and uses their feedbacks to
achieve beneficial solutions.
• It allows companies to demonstrate their social responsibility and
awareness against the environmental impact problems.
• An effective community engagement may lead mining firms to
improve their social legitimacy, credibility and generate trust from
stakeholders which is critical to a sustainable minerals industry.
• Essential for company business rather than a philanthropy.

18. Community Engagement (in a form of Public
Consultation) in the early stage of Mining
A Case Study

19. Lessons Learned:
1. Involved Stakeholders in the Community Engagement
Government
agencies
Community
Engagement
Process
NGO's
Local
Community
Religious
and
traditional
groups
Media

20. 2. Participants Characteristic and Distribution
PRA Conventional
Subdistrict Head and Officials 3 9
Village Headman, Officials, and Council 27 11
Community and Indigenous Leaders 70 1
Women 10 0
Total 110 21
Number of Participants
Method
Lessons Learned:

21. Lessons Learned:
Description:
5:Very High 4:High 3:Medium 2:Low 1:Very Low
Without a proper consultation,
legitimate issues may not be heard,
leading to conflict and
unsustainability
3. Main Issues and Level of Concern

22. Name of
Village:
Lessons Learned:
4. Villages Interest Characteristic

23. Toward greater Sustainable Mining in
Indonesia
• What are to be expected?
• Measures toward Indonesian Sustainable Mining

24. What are to be expected?
• Stimulating local economy activity
• Contribution of mining to revenue and employment
• Mining Concert and Orchestra
– roles for government, companies and civil society
in delivering on sustainable development in the
sector

25. Measures toward Indonesian Sustainable
Mining
• Defining roles and build capacity to address sustainable mining issues
– Government
– Mining Company
– Civil Society
• Capacity improvement on policies and systems of community engagement
• Availability of information that publicly accessible to support effective
public participation in decision-making
• Mining company should work with civil society where government capacity
is lacking
• Internalizing sustainable mining principles into all stages of mining