Jakarta (ANTARA) - The Environmental Social Governance (ESG) principles can enhance the competitiveness of State-Owned Enterprises (SOEs) in the mining sector, Institute for Development of Economics and Finance (INDEF) Research Director Berly Martawardaya stated here on Monday.

"In the context of G20, this is a momentum for Indonesia and Indonesian mining companies to increase competitiveness," Martawardaya remarked.

According to Martawardaya, companies that are part of the state mining industry holding MIND ID, PT Aneka Tambang, and PT Bukit Asam, only scored average in terms of ESG as compared to mining firms in other G20 countries.

Based on a study conducted by INDEF on MIND ID, state mining firms under MIND ID allocate some 0.4-0.5 percent of their revenues to the environment.

In detail, Antam allocates 0.42 percent, or Rp117 billion of its revenue; Bukit Asam, 0.58 percent, or Rp101 billion; Inalum, 0.04 percent, or Rp31.8 billion; and Timah, 0.28 percent, or Rp43.1 billion.

With regard to the indicator of corporate social responsibility (CSR), Antam allocates 0.3 percent of its revenue, or Rp82.11 billion; Bukit Asam, 0.54 percent, or Rp93.75 billion; Inalum, 0.005 percent, or Rp3.79 billion; and Timah, 0.20 percent, or Rp31.76 billion.

Furthermore, 9.79 percent of the workers in Antam are women; 14.33 percent in Bukit Asam; 51.79 percent in Inalum; and 6.79 percent in Timah.

Related news: Government issues coal mining taxes regulation to boost state revenues

INDEF also recommended three suggestions regarding ESG implementation in state mining firms in Indonesia. Firstly, yearly evaluation and quarter report on the ESG roadmap achievements of MIND ID, Martawardaya noted.

Secondly, increasing the share of new renewable energy, and thirdly, improving ESG disclosures and communications with ESG rating agencies, he highlighted.

The principles of ESG have become a demand by the world society for companies to pay attention to the environment and society. Thus, companies that can apply ESG well will be accepted by the market and be more attractive to investors, Martawardaya explained.

Related news: Lawmaker calls for sanctions on industry actors using subsidized fuel

Translator: Sugiharto P, Kenzu T
Editor: Rahmad Nasution
Copyright © ANTARA 2022