Indonesia, the largest archipelago in the world, has historically been known for its immense wealth in natural resourcesFrom minerals to marine species, this country offers a unique biodiversity and a set of resources that have been exploited for centuries. However, this wealth has also generated a series of challenges for the country, both in terms of sustainability and regulation.
Last Sunday, January 12, just one hour before the law that would prohibit the entry into force export of raw minerals, the Indonesian government issued a new regulation adjusting this moratorium. This change in regulation was an attempt by the government to balance the interests of large companies Mining companies and the local economy.
The geopolitical context Indonesia’s economy has changed rapidly in recent years. Since 2009, the country had adopted laws requiring mining companies to refine minerals at local facilities before exporting them. This was intended to boost the national economy, especially in areas where nearly half of the population lives on less than $XNUMX a day. The government also hoped that this policy would help increase the added value of exports and foster domestic economic growth.
Importance of Indonesia's natural resources
Indonesia is among the richest countries in the world in terms of natural resources. The oil and the gas natural are crucial components of the Indonesian economy, with the country ranking 14th in the world in natural gas production. It is also a major exporter of coal and copper, being the world's largest exporter of thermal coal. The reserves of gold y nickel Indonesia's gold and silver mines have achieved significant global rankings, thanks in large part to their mines such as grass hill, one of the largest copper and gold mines in the world. It is also important to highlight the forest resources, which cover almost 50% of the country's land area and place Indonesia seventh in the world in terms of forest area.
Indonesia's biodiversity is another of its key points. It is home to thousands of species of birds, fish, reptiles and mammals. Indonesian rainforests are home to such iconic species as the orangutan and the Komodo dragon, while its seas open up an impressive underwater world full of corals and fish that are unique on the planet.
Minerals and their role in economic growth
The mining sector has been one of the main drivers of Indonesia's economic growth. However, the protectionist policies The country's regulations, which limited the export of unrefined minerals, have forced many mining companies to adapt their operations to comply with the new regulations. These regulations sought to ensure that minerals were processed locally, increasing added value and thus contributing to job creation and local economic development.
Indonesia is the largest producer of nickel in the world. The country is estimated to possess more than 21 million metric tons of nickel, and much of this wealth is found in the islands of Sulawesi and Halmahera. Similarly, Indonesia is a major producer of nickel. carbon, with estimated reserves of over 37 billion tons. These reserves not only supply its energy industry, but are also exported to other developed and developing nations.
El gold It also plays a prominent role in the country's economy, where the Grasberg mine, located in the province of Papua, is one of the largest gold and copper reserves on the planet. Its exploitation has historically been a pillar for the economic balance, although it has also generated tensions with local communities and environmental activists.
The hydrocarbon industry
El oil and natural gas are other key resources that position Indonesia among the world's leading exporters. In 2021, Indonesia produced more than 650,000 barrels of oil per day and was positioned as one of the largest producers of liquefied natural gas (LNG) in the world.
Over the years, the country has invested considerably in the infrastructure related to the extraction and processing of hydrocarbons. However, the dependence on fossil fuels has raised environmental concerns, which has prompted Indonesia to strive to diversify its energy matrix towards renewable energy.
Water and forest resources
Indonesia also has important water resourcesIts vast network of lakes and rivers supplies much of the population, while tropical rains keep its soils highly fertile. Indonesia has an average annual rainfall of more than 2,700 mm, making it one of the rainiest nations in the world, greatly benefiting agriculture and biodiversity.
Indonesia also has extensive forest resourcesIts tropical forests are home to more than 3,000 known species of fauna and some 29,000 species of flora. However, deforestation and the expansion of the palm oil industry have been a constant threat to the country's biodiversity. Thus, the government has instituted moratorium policies to stop illegal logging and preserve ecosystems.
Environmental impact and sustainability
One of the most negative effects resulting from uncontrolled exploitation of resources is the environmental impact. Indonesia is currently the sixth largest emitter of greenhouse gases worldwide, and deforestation has played a significant role in this process. carbon-rich peatlands and Indonesia's forests have been devastated by agricultural and forestry expansion, a situation that has seriously affected biodiversity and the quality of life of millions of people who depend on these natural resources.
In response, the Indonesian government has taken steps to minimize these impacts, such as extending the moratorium on new mining and forestry licenses. In addition, the country has committed, under the Paris Agreement, to reduce its emissions by 29% by 2030.
The fight for Protection of natural resources and reducing the carbon footprint has been a priority in recent years, although there are still many challenges to overcome. environmental regulation must be strengthened to protect local communities and meet medium- and long-term international commitments.
Indonesia is at a socio-economic and environmental crossroads. On the one hand, its dependence on natural resources has been the driving force of its economy, but on the other, this has been accompanied by significant socio-environmental challenges. Indonesia’s future will depend largely on its ability to balance economic development with sustainability and social justice, while protecting its invaluable natural wealth.