Local communities and transparency in Indonesian mining legislation

Abstract

As Indonesia’s mining industry plays an important role in the national economy and global mineral supply chain, local communities and the environment are increasingly affected by the mining industry. This article examines Indonesia’s 2009 Mining Law to understand why it failed to effectively address the needs of communities impacted by extractive industries. Using three key elements of transformative transparency – access to information, meaningful participation and government accountability – the analysis shows that although the law sought to incorporate perspectives of local communities in different stages of the mineral value chain, it failed to ensure that local communities had adequate access to mining-related information, space for participation in decision-making and mechanisms for holding powerful actors accountable. These shortcomings are not addressed in the recent amendment of the law. Instead, the 2020 amendment reverses the promises of decentralisation and democratisation of the country’s mining sector.