De-Risking for Whom? : Repositioning Human Rights and Inclusion at the Core of Indonesia's and Global Critical Minerals Policy Frameworks

Indonesia stands at a critical crossroads in developing its critical minerals industry—an essential pillar of the country’s ambitious economic plans to lead mineral downstreaming and play a pivotal role in the global energy transition. However, this rapid expansion brings not only enormous economic opportunities but also complex and urgent social and environmental challenges that must be addressed for truly inclusive and sustainable growth.

Insights from the 2025 OECD Forum highlighted six priority issues demanding serious attention in Indonesia’s mineral governance. First, the urgent need to strengthen legal frameworks and embed ESG principles that go beyond investor interests to genuinely protect communities and the environment. Second, the persistent challenge of fragmented and complex due diligence standards, which hamper effective risk identification and management throughout mineral supply chains. Third, gender issues remain severely overlooked, with minimal recognition of diverse gender identities—including LGBTQIA+ communities—while structural discrimination and inequality persist in mining sectors. Fourth, the understanding and implementation of Free, Prior, and Informed Consent (FPIC) for Indigenous peoples are shallow and largely procedural, far from the fundamental legal protection meant to empower communities in negotiations and decision-making. Fifth, transparency and traceability claims within mineral supply chains remain largely performative, lacking independent verification mechanisms or meaningful data access for affected communities. Finally, corruption risks and conflicts of interest in licensing and oversight continue to undermine public trust and exacerbate inequitable resource benefits.

Without comprehensive policy reform that centers human rights, gender equality, transparency, and anti-corruption governance, Indonesia risks entrenching an extractivist model that widens inequality and damages ecosystems. National policies must urgently shift focus—not just to meet economic targets but to ensure protection and justice for all stakeholders, especially the most impacted communitie