Nickel Industries Limited, one of the world's largest nickel producers, addressed misconceptions about mining and deforestation at the International Critical Minerals & Metals Summit in Nusa Dua, Badung, Bali.
During the event, Muchtazar, Head of Sustainability at Nickel Industries Limited, tackled the pressing issue of deforestation.
His presentation challenged the widespread belief that mining is the primary cause of deforestation in Indonesia.
"Contrary to popular belief, mining is not the leading cause of deforestation," Muchtazar said in a statement received in Jakarta on Monday.
He explained that in 2023, less than 1 million hectares of land in Indonesia were used for mining. To put this into perspective, Indonesia has a total land area of around 190 million hectares, with approximately 63 percent classified as forested areas, covering around 120 million hectares.
"This means mining activities account for only about 0.5 percent of the total land area or nearly 1 percent of the forested areas in the country," Muchtazar noted.
Furthermore, he highlighted the significant economic contribution of the mining sector, which contributed more than 10 percent to Indonesia's national gross domestic product (GDP) in 2023.
"The mining sector provides essential materials and fuels that the world needs, playing a crucial role in our economy," he stated.
Muchtazar called for evaluations based on accurate data and a balanced perspective to ensure sustainable development that aligns economic growth with environmental preservation.
"By basing our evaluations on accurate data, we can ensure sustainable development that harmonizes economic growth with environmental conservation," Muchtazar emphasized.
He also mentioned that while companies focused on forest conservation and environmental sustainability have yet to receive premium pricing for their products in the market, responsible mining companies should not worry.
"Because they will have a better investment portfolio and the ability to sell mining materials to global markets with high sustainability standards, thereby reducing risks in their supply chains," he concluded.
