The National Seminar on Gender and Policy Reflections in Indonesia’s Extractives Industry: Towards a Sustainable Development

KEY AGENDAS:

1. Webinar “Gender in Mining” aimed to discuss the current state of gender issues in mining industry, both in Indonesia and at global level, in a comprehensive manner by looking at various intersectional dimensions: policy, private sector, community, historical and cultural.
2. Webinar “Decent Work in Artisanal and Small-scale Mining (ASM): Mercury Abolishment and the Impacts of COVID-19 to the Sector” intended to carefully examine inhibitors of the implementation of decent work and gender equality policies in Indonesia’s ASM communities, focusing on mercury abolishment efforts and softening the blow of COVID-19 to the subsector.

The National Seminar was opened by three speakers: (i) Dr. Ir. Ridwan Djamaluddin, M.Sc., Director General of Mining and Coal, Ministry of Energy and Mineral Resources, Republic of Indonesia; (ii) Sherry Hornung, Head of Cooperation, Embassy of Canada to Indonesia; and, (iii) Abdoulaye Sy, Senior Economist and NR4D Team Leader, The World Bank.

In his opening remarks, Ridwan Djamaluddin highlighted NR4D support to the Government of Indonesia, in the Extractives and Energy Sector, during its 5-year implementation, “… NR4D highlights gender aspects in the extractives sector where the team informs the Government of Indonesia regarding the gender gaps in both Large-Scale Mining and Artisanal and Small-scale Mining subsectors. These studies further provide recommendations for The Government to create a more gender-sensitive policy in the mining sector. On the policy front, the Government of Indonesia is supported by the inputs from the Mining Sector Diagnostics and the study on  clean-cooking initiative, towards stronger sector governance and a cleaner and safer energy future for many households in Indonesia.”

Despite progress, Sherry Hornung noted that many still need to be done, particularly with regards to gender equality in Indonesia’s mining sector, “The NR4D project found that despite positive progress towards gender equality, gender stereotypes are still evident in some mining companies. This has resulted in an unequal access curve in development for women and occupational gender segregation.”

Abdoulaye Sy expressed his hope for the success of the National Seminar even beyond the Program itself, “I am hopeful that this National Seminar will be an excellent knowledge sharing and networking platform for all the participants.”

The opening remarks session was followed by Webinar 1 “Gender in Mining” which was moderated by Maya Muchlis, Executive Director of Women in Mining and Energy Indonesia (WiME).

The panel was opened by Rachel Bernice Perks, Senior Mining Specialist at The World Bank, who provided insights on gender equality challenges in ASM, which was mainly due to lack of available data, including in Indonesia. However, several initiatives have been made in this regard, such as the rapid survey to record the COVID-19 impacts to ASM communities, including female miners, and the photovoice project that documents the experiences of women in ASM community during COVID-19. Moving forward, in 2022, The World Bank will initiate a global effort to collect gender-disaggregated data in ASM subsector as an attempt to further understand the current condition in the field. The collected data will then be a basis for developing necessary measures to tackle gender issues in the subsector.

In the second presentation, Febriany Eddy, CEO of PT Vale Indonesia Tbk., shared the progress made by her company in translating gender mainstreaming into the policy and daily practices. Starting with the signing of the Diversity and Inclusion Charter in 2020, PT Vale Indonesia Tbk. has put forward an agenda to create and sustain a culture of inclusion that does not only cover gender aspects, but also people with disabilities and local talent. Up to 2021, the company has raised awareness and reduced institutional bias through campaign and education at all employment levels, and incorporated the diversity concept into recruitment processes, career development, and the daily working environment.

This presentation was followed by that of Yuli Adiratna, S.H., M.Hum., Director of Labor Norms Inspection, Ministry of Manpower, Republic of Indonesia. Yuli Adiratna identified existing policies, laws and regulations in Indonesia that have integrated gender aspects in the workplace. These are categorized into three: (i) protective measures, to protect the reproduction function of female employees; (ii) corrective measures, to empower women; and, (iii) non-discriminatory measures, to ensure equality in rights and responsibilities between women and men.

Kuntala Lahiri-Dutt, Professor at Australian National University, concluded the first webinar with a comprehensive presentation on the history of gender in mining industry across the globe that dismantles various gender bias and stereotypes that are still found in the industry today, such as “protective” conventions and legislations. Despite the existing challenges, she also acknowledged the feminization of mining, seen from, among others, the increase in (rural) women’s participation rate, number of mining tasks in which women participate, women’s role in decision making and visibility of women in documentation.

In addition to the presentations, live chat was available throughout the live event. Here are some key questions posed by the attendees:

1. Discriminatory Practices
Question for Yuli Adiratna. Discriminatory practices are still found in some companies’ hiring process, e.g., using the words “male is prioritized” in their open recruitment announcement. Are there any measures enforced by the Government to deal with such practices? Can society report this?

Any complaints regarding discriminatory practices can be reported to the Ministry of Manpower or Office of Manpower at sub-national level. There will be administrative sanctions applied.

2. Change in Gender Relations
Question is for Kuntala Lahiri-Dutt. Does feminization in the professional domain require a change in gender relations in both the household and community?

Yes, indeed, gender roles and relations at the household and the community also need to change as more women participate in the formal sectors of work, including in mining. That, however, does not happen easily, it takes time. For example, in a 2005 study on gender mainstreaming in the mines that was conducted in Kaltim Prima Coal, it was found that the average length of work for many women truck drivers in its East Kalimantan field was only about four years. This is because most women were migrants who married after joining work. But then they bore children and were unable to continue doing shift work and had to leave the work.

The second Webinar “Decent Work in ASM: Mercury Abolishment and the Impacts of Covid-19 to the Sector” was moderated by Budi Susilorini, Indonesia Country Director of Pure Earth and Co-Founder of WiME.

The first presenter was Dr. Lana Saria, S.Si., M.Si., (then) Director of Engineering and Environment, Ministry of Energy and Mineral Resources, Republic of Indonesia (She now holds the position as Director of Coal). Lana Saria discussed available opportunities to strengthen People’s Mining License Holders’ position that were embedded in the newly enacted Mining Law No.3/2020. Identified challenges were related to the lack of data, low records of occupational health and safety (OHS), and COVID-19 impacts. Notwithstanding, the Government is confident that progress is possible with the support from private sector and non-governmental organizations. This also applies in the case of reducing and eliminating mercury in Artisanal and Small-scale Gold Mining (ASGM) activities.

The subject of mercury abatement was further elaborated by Ir. Yun Insiani, M.Sc., Senior Environment Pollution Controller, Ministry of Environment and Forestry, Republic of Indonesia. Yun Insiani presented the progress made by GOLD-ISMIA Project, a collaboration between Ministry of Environment and Forestry, National Agency for Technology Assessment and Application, and United Nations Development Programme that aimed to reduce and eliminate mercury from Indonesia’s ASGM through the provision of technical assistance, technology transfer, public-private partnerships and financial access for miners. Since 2018, the project has succeeded in developing mercury-free technology and plants, and training miners on waste management and OHS in gold cyanidation. The project is expected to conclude in 2023.

Katelijn van den Berg, Senior Environmental Specialist at The World Bank, provided more insights on the possible efforts to eliminate mercury based on a study conducted by The Bank, Nexus3 Foundation and Biodiversity Research Institute regarding policy and investment options to support Minamata Convention Implementation in the ASGM subsector. Findings from the study showed that mercury contamination was pervasive and not only found in mining locations, but also at residential areas, putting women and children at risk even when they were not directly involved in ASGM activities. The presentation concluded with suggestions to improve monitoring measures and programs; advance formalization, coupled with adherence to safe working conditions and effective mercury-free gold chain; and establish government funds and co-financing for mercury remediation. Due to the significant impacts of mercury on women and children, it was further recommended to nominate women as ambassadors for good mining practices in ASGM community.

The webinar then focused on the impacts of COVID-19 to ASM communities, both in Indonesia and at global level. Dinomika, Program Coordinator at Yayasan Tambuhak Sinta (YTS), shared the Indonesian case, based on the second batch survey findings that was a collaboration between The World Bank and YTS during the early onset of the pandemic. It was found that the pandemic caused disruptions in food supply, employment, miners’ income and supply chains. In terms of gender, increase in dual responsibilities was evident amongst the women. Findings of this rapid survey became the basis for a COVID-19 emergency response to ASGM communities in Central Kalimantan, funded by Extractives Global Programmatic Support (EGPS).

At global level, Patricia Nsimire Ndagano, Consultant at The World Bank who works in managing EGPS projects, shared the lessons learnt from similair initiatives across the globe. EGPS deploys grants to over 28 partner organizations in more than 20 countries to provide emergency response programs for ASM communities impacted by the pandemic.  These initiatives promote decent work in ASM by sensitizing ASM communities on COVID-19, improving OHS, advancing safe mining practices by eliminating mercury and advocating gender equality. The organization believes that the pandemic can also serve as an opportunity to upgrade the assistance offered to miners to improve their working conditions.

Discussion on live chat platform generated several key questions as below:

1. Waste management

Question for Yun Insiani. The "mobile processing plant" sounds like a great solution for ASGM miners with small capital, but who will be responsible for the waste, e.g., tailing, and how is the waste going to be managed? Is it hazardous waste or not? How can we be assured that the waste is not dumped elsewhere?

The miners will be responsible for their own tailing. The GOLD-ISMIA project will equip them with knowledge and skills to handle toxic tailings when they use cyanide and turn them into non-toxic materials.

2. Mine Site Rehabilitation

Question for Yun Insiani. On post-mining rehabilitation, there are thousands of ex-mining sites, some are the results of open pit and some are of tailing dumping that can include mercury contaminated tailing, as the ASGM miners work mostly in gold vein area. Thereafter they will process the ore, get the bullion then move. These result in enormous legacy sites, e.g., sites with high level of mercury contamination. At this moment, these sites may be overlooked as they are in remote areas, but as development progresses, one day, it will reach these contaminated sites. How is the country going to deal with these legacy sites?

The Government is responsible for the spatial management of ASGM activities. Some areas, such as protected forests are prohibited from ASGM operations. Thus, the Government continues its support towards formalization to ensure that ASGM activities operate in non-protected areas, and is fully aware of the need for rehabilitation in mercury-contaminated areas. However, since there is a budget constraint, prioritization plans for reclamation are necessary.

KEY AGENDAS:

1. Webinar “Clean Cooking: The Transition to Safer and Greener Energy” aimed to exchange knowledge on best practices of clean cooking initiative using the country example of Ecuador.
2. Webinar “Mining Policy and Building Local Economic Diversification” disseminated findings of the deep dive in the mining sector as reflected in the 6 Mining Policy Papers and attempted to promote benefit-sharing at sub-national level.

Day 2 was opened by Webinar 3 “Clean Cooking: The Transition to Safer and Greener Energy”. The panel presented Mark Thurber from Walsh Ecuador as the speaker and Kelvin Tan from The World Bank, as discussant. In his presentation, Mark Thurber provided insights on how the Program for Energy Efficient Cooking in Ecuador was essential in reducing Liquified Petroleum Gas (LPG) subsidies and incentivizing the adoption of induction stoves, which made cooking healthier, greener and safer. Kelvin Tan then discussed on how some of these findings could be lessons learnt for Indonesia, such as regarding LPG subsidy and its impacts on fiscal policy. On the other hand, the panel was also aware that, different from Ecuador where most power in the country is supported by hydroelectricity, Indonesia is still reliant on coal and gas.

The second webinar on “Mining Policy and Building Local Economic Diversification” was divided into two discussions. The first session discussed key findings of the Mining Policy paper series in the focus areas of Investment and Exploration, Management of Artisanal and Small-scale Mining, Social and Environmental Transparency, Mine Inspection Performance, Land Conflicts and Cadastral Licensing, Mineral Downstream Development, and - a collaboration between The World Bank and Association of Indonesian Mining Professionals (Perhapi), while the second discussion elaborated how Extractives-led Local Economic Diversification (ELLED) framework was used as a tool to dissect local benefit sharing practices that had been conducted by mining industry in Indonesia.

The session on Mining Policy paper series was moderated by Ratih Amri, SVP Corporate Secretary, MIND ID. Rizal Kasli, the Chairman of Perhapi, opened the panel in the first session with his presentation on Mining Policy paper series. The key findings of each theme are below.

Theme 1: Boosting Exploration Investment in the Indonesian Mining Sector. Problems identified include declining exploration investment and reserves discovery, fewer greenfield exploration and underdeveloped junior mining companies. The Paper informs the importance to improve divestment obligation policy, resolve land and management issues, strengthen preliminary investigation, encourage participation of junior mining companies, and develop financing strategy and national geological database.

Theme 2: Improving Management of Artisanal and Small-scale Mining (ASM). The subsector faces serious challenges with regards to Occupational Health and Safety (OHS) and environmental risks, social conflict, pragmatic attitude of miners, mineral conservation issue and loss of state revenue. Recommendations to improve the management and governance in ASM include advocacy for formalization, provision of centralized and integrated processing facilities, establishment of Large-Scale Mining- ASM partnership, provision of technical assistance and policy reinforcement regarding illegal practices.

Theme 3: Social and Environmental Transparency. Current issues within this area are lack of legal implications to support public involvement for the Environmental Impact Analysis (EIA) process, information asymmetry on social and environmental performance, and lack of information disclosure regarding contract and licensing to the public. The Paper highlights the need to conduct inclusive public consultation during licensing process with the presence of relevant government officials, develop progressive legal framework, strengthen policies to regulate procedures and cost determination, and create a public platform for transparency of the Environmental Restoration Guarantee Fund.

Theme 4: Mine Inspection Performance. The Paper identifies four problems regarding mining supervision, namely limited number of mining supervisors, lack of synergy between management plans and supervision, complicated bureaucracy system, and low level of public participation. Recommendations include establishing an integrated service and supervision office both at national and local levels, supervising the Beneficial Ownership during Mining Business License ownership transfers, accelerating the integration of the single-ID database mining production monitoring system and implementing standardized procedures for complaint mechanism.

Theme 5: Land Conflicts and Cadastral Licensing Issues in Mining. The key issue in this area revolves around land conflict in mining sector due to the absence of standardized land administration and mining cadaster institution. Thus, it is important to strengthen the existing cadaster system and developing an integrated computerized mining cadaster system.

Theme 6: Mineral Downstream Industry Development. The problems that are found are the lack of optimization with regards to the implementation of mineral downstreaming policy, policy dualism and high financing. Thus, it is recommended for the government to accelerate the formulation of the National Mineral and Coal Management Grand Strategy and the strengthening and better coordination with the Industry side as the driving sector for mineral production; provide incentives for integrated smelters; establish National Strategic Project Monitoring; and strengthen synergy between Ministry of Energy and Mineral Resources and the Ministry of Industry through stronger policy frameworks.

Four commentators then provided their feedbacks to the paper series. Prof. Irwandy Arif, M.Sc., Special Staff for Mineral and Coal Acceleration Governance, Ministry of Energy and Mineral Resources, highlighted the paper series’ coverage on crucial issues that were also previously discussed in the Indonesian Mining Policy Document, which were Mineral and Coal Inventory, Mineral and Coal Management and Utilization, Mineral and Coal Conservation and Monitoring and Evaluation.

Dr. Raden Sukhyar, Independent Mining Consultant, welcomed the good work presented in the paper. He also emphasized the need to clearly define the position of this Mining Policy paper series vis-a-vis the current mining law.   

Maryati Abdullah, (then) Senior Advisor at Publish What You Pay Indonesia, underlined the need for mining operations to comply with two guidelines, which are Sustainable Development Goals and Environment and Social and Governance Standards; and engage citizens in transparency efforts.

Balada Amor, Senior Mining Specialist at The World Bank, highlighted three areas that are relevant to the Bank’s engagement in Indonesia and can further generate partnerships among stakeholders, namely promoting gender equality, data mainstreaming through Extractives Industry Transparency Initiative (EITI) and Energy Transition within the context of a Just Transition for All.

The second part of the Webinar “Mining Policy and Building Local Economic Diversification” discussed local economic diversification initiatives that had been implemented by Indonesian mining companies and the ELLED framework. This session was moderated by Balada Amor, Senior Mining Specialist at The World Bank.

Rizal Kasli, the Chairman of Perhapi, shared the association’s study on the existing initiatives by Indonesian mining companies in rehabilitating former mining pits to generate economic diversification at local level, such as by turning it into geoparks and supplying water for fire brigade. Among the initiatives, one is being developed in Kutai Kartanegara District, which increases the significance of the project, considering the new capital city will be located in the same province.  

Kelvin Tan then discussed the study findings within the context of ELLED framework. The potential contribution of the mining sector to the development of the new capital city was highlighted as such development would entail various demands that could be supported by the mining sector. This goes beyond extractives, as mentioned previously in the presentation that former mining pits could be used for various functions. Further, mining business locations in some cases can be developed into a Special Economic Zone (SEZ). Coupled with the country’s plan towards a new capital city, this SEZ was seen as being able to provide more opportunities for the locals in the area.

Towards the end of the session, Balada Amor shared her hope that this discussion on local economic diversification could provide more insights on how the works under Natural Resources for Development Program generated broader and stronger local benefit sharing and proliferates economic diversification at sub-national level.

Closing remarks by Michael Stanley, Practice Manager, Energy and Extractives, The World Bank, concluded the final day of the National Seminar. Michael Stanley assured The World Bank’s support to the Government of Indonesia in the near future, particularly with regards to the energy transition agenda, “Moving forward, the World Bank will continue its support to the Government of Indonesia in the extractives sector to encouraging clean energy transition that considers the economic, social, and environmental dimensions; and ensuring that the transition process is especially considerate of adverse impacts to workers and communities, including the most vulnerable, which very often includes women and marginalized groups. We must also commit to helping the Government to achieve its Paris Agreement commitments so that we may all collectively address climate change. Global warming threatens to erase development gains and the world, and Indonesia, is challenged to transition to a low carbon future. The World Bank’s climate action plan for East Asia commits to ensuring a Just Transition for All which means we will give considerations to build strong institutions needed in the extractives sector, mitigating the impacts of workers and communities within the low carbon transition and really ensuring that appropriate environmental remediation is undertaken to address environmental legacies from post mining, post extractives industry activities and these land and physical assets that have been built up can be made available for future investors and economic users.”