In light of recent environmental damage in Raja Ampat, experts have called on the government to tighten standards for critical mineral investments, emphasizing the urgent need to strengthen Environmental, Social, and Governance (ESG) enforcement in both mining and downstream sectors.

Al Ayubi, Policy Strategist at energy transition monitoring foundation CERAH, said the lack of effective ESG practices in nickel mining and smelting operations has severely harmed local communities and the environment.

“Nickel smelters in Indonesia emit around 58.6 tons of CO₂ per ton of nickel − five times more than Australia's BHP Nickel West, which only emits 11 tons,” Ayubi said on Monday, June 30, 2025.

He also highlighted pollution of local water sources in Wawonii Island, Southeast Sulawesi, and reported 93 work-related accidents in the nickel smelting industry between 2015 and 2023.

Ayubi emphasized that stronger ESG criteria could significantly reduce such impacts.

“Fiscal incentives and permits should only be granted to projects that meet clear ESG thresholds − such as the use of clean energy, protection of Indigenous rights, local community involvement, and environmental rehabilitation,” he cited. “ESG standards must also ensure fair benefit distribution and help prevent conflict, not merely legitimize investment.”

Patricia Rinwigati, Director of the Djokosoetono Research Center at the University of Indonesia, suggested uniform ESG application across all companies − regardless of size − under robust government oversight.

“The government must undertake thorough due diligence to define ESG criteria and codify them into binding regulations,” Patricia noted. “This should include integrating international standards with national law and building a comprehensive monitoring and reporting system.”

Andre Barahamin, Community Outreach Coordinator for the Initiative for Responsible Mining Assurance (IRMA), stressed the importance of the Free, Prior, and Informed Consent (FPIC) principle within ESG frameworks like IRMA.

“FPIC includes the right to say no, granting communities the power to reject projects in their territories,” Andre said. “Proper ESG implementation not only reduces conflict but also offers business advantages such as improved market acceptance and international supply chain reputation.”

Andre also pointed out that global demand for responsibly sourced critical minerals continues to grow. “ESG compliance is now a key metric in evaluating companies’ ability to mitigate human rights violations, environmental degradation, and long-term conflict,” he said.

The case in Raja Ampat, he added, stands as a warning that without strict ESG standards, Indonesia’s mineral wealth could come at the cost of its environment and its people.