The impact of climate change is becoming a threat to all nations. Issues like droughts, temperature anomalies, and food security threats signify the urgency of implementing strategies to reduce carbon emissions by 2060.
The Indonesian government has set a target to reduce carbon emissions by 31.89%, which has slowly been incorporated into various policies.
One of the steps taken is participating in the Extractive Industries Transparency Initiative (EITI). EITI is a global standard for the transparency of extractive natural resource governance, such as oil, natural gas, and coal.
Focusing on this issue, the Department of Politics and Government at the UGM Faculty of Social and Political Sciences, together with the EITI Indonesia Secretariat, held a seminar on Monday (October 16) entitled “Extractive Transparency Day: Contextualizing Data Transparency and Information in the Extractive Industry within the Framework of a Just Energy Transition.”
“One of the most fundamental elements in adapting to climate change is the energy transition towards sustainable, cleaner, and renewable energy. Certainly, it should involve aspects of justice, equality, and welfare,” said Dr. Wawan Mas’udi, the Dean of the Faculty of Social and Political Sciences.
“Hence, the PolGov collaborates with national and international stakeholders on this energy transition. This also becomes our faculty’s agenda to shape a green society.”
The extractive resource industry has long been a cornerstone of various countries’ economies, including Indonesia. For years, this industry has even led to society’s dependence on fossil fuels.
The energy transition process involves not only ensuring the availability of renewable energy but also securing the sustainability of the extractive resource industry.
Dr. Mas’udi added that a strategy for reducing carbon emissions could involve a gradual taxation policy for extractive industries. This approach would gradually shift fuel consumption toward renewable energy sources.
Agus Cahyono Adi, the Head of the Data and Information Center Secretariat at the Ministry of Energy and Mineral Resources, mentioned that the extractive industry often lacks accountability in exploiting natural resources.
“The extractive industry is not just about opening land, extracting goods, and leaving it as is. We also need to consider what would happen if this industry ceased to exist,” Adi said.
“Our constitution reminds us that the natural resources on the Indonesian earth must be used as the basic capital for the benefit of society.”
In order to ensure the community’s interests, transparency regarding the management of extractive resources must be elucidated.
Based on Presidential Regulation No. 26 of 2010 concerning State Revenue and Regional Revenue Transparency from Extractive Industries, the government explains all processes ensuring the availability of extractive natural resources, extraction procedures, and the proceeds from extractive resources processing.
“We strive for increased transparency by renewing the information portal on a single channel. What has been achieved, and the revenue generated, will be there,” said Adi.
“Not just an additional effort, there is a clause in the Oil and Gas Law that states that every mining company also has a responsibility to empower the economy in its surrounding area. Thus, the extractive industry can truly harmonize with the environment.”