ESG Commitment Becomes Key Pillar to Promote Sustainable Downstreaming

KONTAN.CO.ID - JAKARTA. The massive development of the mineral and metal downstreaming sector in Indonesia needs to be accompanied by corporate commitment to Environmental, Social & Governance (ESG) practices.

Commitment to ESG practices in business operations is considered one of the important points in promoting sustainable downstreaming in Indonesia.

Global Senior Advisor dss⁺ Sunil Duggal said that the mining and downstreaming industry continues to develop from year to year.

"To attract foreign investment, the most important thing is to promote ESG practices, sustainable and responsible mining. Potential investors will see that Indonesia is capable of this," said Sunil in an exclusive interview with Kontan.co.id, Tuesday (11/6).

Sunil revealed that awareness of sustainable business practices has driven significant changes in the mining and downstreaming industry over the past few decades.

Several countries pay more attention to the sources of processed mineral and metal production. ESG practices in the mining and downstreaming process are considered one of the key tools in reaching international markets.

Sunil said that dss⁺, as a consulting service provider, is committed to encouraging companies to implement the right technology and practice ESG, including efforts to reduce emissions and decarbonize.

Sunil, who is also the Chairman of Vedanta Ltd, a multinational mining company from India, explained that dss⁺ plays an important role in the business transformation efforts of companies.

Indonesia, which has potential in mineral and metal downstreaming, is also considered to have the opportunity to continue developing its industry to a global scale.

According to him, the presence of regulations or policies involving business actors is one of the important aspects in promoting downstreaming development.

Mining & Metals Lead dss⁺ Indonesia Alfonsius Ariawan revealed that regulatory strengthening needs to be done by applying the right standards.

Recently, the mineral downstreaming industry in Indonesia has been in the spotlight due to Health and Safety (K3) incidents at several smelter facilities.

"There needs to be regulatory strengthening. Auditing smelter facilities is good but it's just a minimum standard. That is the first step; there needs to be collaboration between industry and government," explained Alfonsius in the same opportunity.

In promoting sustainable business, the development of an integrated industry is another important aspect that needs to be fulfilled by business actors.

Sunil said there is a significant difference between the mining industry and the processing or refining industry.

"With an integrated industrial approach starting from exploration to downstream processing, value-added can be increased," Sunil added.

In addition to promoting the implementation of appropriate technology, human resource development also needs to be a focus in efforts to promote industrial growth.

"There needs to be involvement from experienced parties with global experience to improve human resource skills and promote good business practices," said Sunil.