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Lack of clean power may jeopardize Indonesia's downstream dream
Industry players want the government to help increase the clean power supply and to lobby other countries to continue accepting Indonesian products during the transition period.
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Smokestacks at the Suralaya coal-fired power plant belch fumes into the sky on Sept. 21, 2018, above Cilegon, Banten. (AFP)
G
overnment efforts to capitalize on Indonesia’s rich mineral resources through downstream industry development may falter if there is no push to tap renewable energy sources, analysts and environmental activists warn.
Industry players feel under pressure to shift to renewable energy for their operations and have expressed their readiness to do so, but they say it is difficult in many regions.
They urge the government to help develop renewables in parts of the country that lack so-called green energy, as well as to lobby other countries to continue accepting their products during the transition period.
Adaro Minerals Indonesia, a subsidiary of Indonesia’s second-largest coal mining company Adaro, stated that its nonbinding memorandum of understanding (MoU) with South Korean carmaker Hyundai expired at the end of last year. The deal, signed in November 2022, allowed Hyundai to procure Adaro’s “low-carbon aluminum”, the firm added.
The two companies “decided not to renew it and to explore other opportunities independently,” said Wito Krisnahadi, a director at Adaro Minerals, in a statement on Tuesday.
Aluminum is an essential material in automotive manufacturing.
The agreement stipulated that Hyundai would purchase between 50,000 and 100,000 tonnes per annum (tpa) of aluminum during the first production phase of Adaro’s upcoming smelter, as well as the green aluminum to be produced in the later phase.
