ENHANCING SUSTAINABILITY AND COMPETITIVENESS IN INDONESIA’S MINING SECTOR: A SYSTEMATIC LITERATURE REVIEW OF ESG IMPLEMENTATION
Abstract
The mining sector plays a pivotal role in Indonesia’s economic development, yet it also faces increasing scrutiny regarding its environmental, social, and governance (ESG) performance. Integrating ESG principles into mining practices, particularly within downstream policies, is essential to ensure both sustainability and global competitiveness. This study aims to (i) assess the importance of ESG implementation within Indonesia’s downstream mining policy, (ii) evaluate the current level of ESG adoption in industrial practices, and (iii) formulate strategies to enhance sustainability and competitiveness based on ESG principles. To achieve these objectives, a Systematic Literature Review (SLR) was employed, synthesizing evidence from academic research, policy documents, and industry reports. The review was conducted in three stages: five articles were analyzed to assess the policy importance of ESG, another five to evaluate adoption in industrial practices, and ten to generate strategic recommendations. Artificial intelligence tools were used to support the review process, ensuring transparency, rigor, and efficiency in screening and synthesizing literature. The findings highlight that while ESG has gained recognition in Indonesia’s mining sector, challenges remain in consistent adoption, stakeholder engagement, and disclosure quality. The study proposes context-specific strategies such as strengthening governance frameworks, improving community participation, and integrating ESG into enterprise risk management. These insights contribute to advancing sustainable mining practices and provide strategic directions for policymakers, industry leaders, and stakeholders seeking to align Indonesia’s mining sector with global ESG standards
References
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Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a Methodology for Developing Evidence-Informed Management Knowledge by Means of Systematic Review. British Journal of Management, 14, 207–222. https://doi.org/10.1016/j.intman.2013.03.011
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Vera-Burau, A., Pera, L. S., & Massanes, M. B. (2025). Integration of quantitative ESG factors in a mining project: Case studies of a quarry. Journal of Cleaner Production, 501(May 2024). https://doi.org/10.1016/j.jclepro.2025.145304
Woźniak, J. (2022). Corporate vs. Corporate foundation as a support tool in the area of social responsibility strategy – Polish mining case. Resources Policy, 77(July 2021). https://doi.org/10.1016/j.resourpol.2022.102659
Zhang, N., Yang, C., & Wang, S. (2024). Research progress and prospect of environmental, social and governance: A systematic literature review and bibliometric analysis. Journal of Cleaner Production, 447(February), 141489. https://doi.org/10.1016/j.jclepro.2024.141489
Agus, S., Supriadi, A., Kencono, A. W., Prasetyo, B. E., Kurniasih, T. N., Catur, F. K. S., Kurniadi, C. B., Alwendra, Y., Bhaskoro, T. P., Aprillian, R., Rabbani, Q., & Anggreani, D. (2017). Kajian Penggunaan Faktor Emisi Lokal ( Tier 2 ) dalam Inventarisasi GRK Sektor Energi (1st ed., Issue Tier 2). Pusat Data dan Tekonologi Informasi ESDM Kementrian Energi dan Sumber Daya Mineral.
Andespa, A.-A. W. H. B. (2022). Peran Baitul Maal Wa Tamwil (BMT) Sidogiri Unit Cabang Sui Kunyit Terhadap Pemberdayaan Usaha Mikro Kecil di Desa Sui Kunyit Hulu. … Jurnal Multidisiplin Ilmu, 1(6), 1222–1223.
Aristiningtyas, T. P., & Fidiana. (2023). Pengaruh Kinerja Environmental, Social, Governance (ESG) Terhadap Risiko Investasi. Jurnal Ilmu Dan Riset Akuntansi (JIRA), 12(8), 16.
Bergh, D. D., David J. Ketchen, J., Orlandi, I., Heugens, P. P. M. A. R., & Boyd, B. K. (2019). Information Asymmetry in Management Research: Past Accomplishments and Future Opportunities. Journal of Management, 45(1), 122–158. https://doi.org/10.1177/0149206318798026
Bester, V., & Groenewald, L. (2021). Corporate social responsibility and artisanal mining: Towards a fresh South African perspective. Resources Policy, 72(January), 102124. https://doi.org/10.1016/j.resourpol.2021.102124
Brown, S., & Hillegeist, S. A. (2007). How disclosure quality affects the level of information asymmetry. Review of Accounting Studies, 12(2–3), 443–477. https://doi.org/10.1007/s11142-007-9032-5
Cai, T., Shi, X., Shang, Z., Zhu, X., & Qi, J. (2024). The role of blockchain technology in facilitating finance for metal and mining resources. Resources Policy, 99(November), 105383. https://doi.org/10.1016/j.resourpol.2024.105383
Darsono, D., Ratmono, D., Lee, S., Cahyonowati, N., & Lianawati, L. (2024). ESG and Environmental Performance: Multiple Mediation Models of Green Accounting and CSR Disclosure. International Journal of Energy Economics and Policy, 14(5), 365–371. https://doi.org/10.32479/ijeep.16682
Donaldson, T., & Preston, L. E. (1995). The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications. The Academy of Management Review, 20(1), 65. https://doi.org/10.2307/258887
Fikru, M. G., Avila-Santamaria, J. J., Soria, R., Logan, A., & Romero, P. P. (2024). Evaluating ESG risk ratings of mining companies: What are lessons for Ecuador’s developing mining sector? Resources Policy, 94(June 2023), 105133. https://doi.org/10.1016/j.resourpol.2024.105133
Gervais, E., Kleijn, R., Nold, S., & van der Voet, E. (2023). Risk-based due diligence in supply chains: The case of silver for photovoltaics. Resources, Conservation and Recycling, 198(August). https://doi.org/10.1016/j.resconrec.2023.107148
Giljum, S., Maus, V., Kuschnig, N., Luckeneder, S., Tost, M., Sonter, L. J., & Bebbington, A. J. (2022). A pantropical assessment of deforestation caused by industrial mining. Proceedings of the National Academy of Sciences of the United States of America, 119(38), 1–7. https://doi.org/10.1073/pnas.2118273119
Görner, S., Gregory Kudar, Mori, L., Reiter, S., & Samek, R. (2020). The mining value chain: A hidden gem. McKinsey&Company, October, 1–8. https://www.mckinsey.com/industries/metals-and-mining/our-insights/the-mine-to-market-value-chain-a-hidden-gem
GRI 305, G. S. S. B. (2016). Gri 305: emisi 2016. Gri Standards, 1–26.
Hasyim, I. (2025). Pakar Ungkap Ikan Napoleon Terancam Aktivitas Tambang. Tempo.
Heichl, V., & Hirsch, S. (2023). Sustainable fingerprint – Using textual analysis to detect how listed EU firms report about ESG topics. Journal of Cleaner Production, 426(September), 138960. https://doi.org/10.1016/j.jclepro.2023.138960
Kholis, N., Aswidah, R., & Prihandono, I. (2020). Responsible Investment in Indonesia Mineral Mining Sector. 3rd International Conference on Law and Governance, 130(Iclave 2019), 300–310. https://doi.org/10.2991/aebmr.k.200321.039
Lèbre, É., Owen, J. R., Kemp, D., & Valenta, R. K. (2022). Complex orebodies and future global metal supply: An introduction. Resources Policy, 77(March). https://doi.org/10.1016/j.resourpol.2022.102696
Mukhtar, B., Shad, M. K., Ali, K., Woon, L. F., & Waqas, A. (2025). Systematic literature review and retrospective bibliometric analysis on ESG research. International Journal of Productivity and Performance Management, 74(4), 1365–1399. https://doi.org/10.1108/IJPPM-07-2023-0395
Nyilasy, G., Gangadharbatla, H., & Paladino, A. (2014). Perceived Greenwashing: The Interactive Effects of Green Advertising and Corporate Environmental Performance on Consumer Reactions. Journal of Business Ethics, 125(4), 693–707. https://doi.org/10.1007/s10551-013-1944-3
Perdana, A. Y., Widagdo, A. K., & Ika, S. R. (2024). Governance Attributes Driving Sustainability Reporting in Indonesia’s Mining Industry. E3S Web of Conferences, 593, 1–8. https://doi.org/10.1051/e3sconf/202459315001
Putriningtyas, I., Widiastuti, N. P. E., & Sjam, J. M. E. (2024). Environmental, Social, and Governance Disclosure As Pathway To Business Sustainability on the Mining Companies in Indonesia and America. Jurnal Aplikasi Manajemen, 22(1), 109–124. https://doi.org/10.21776/ub.jam.2024.022.01.09
Saepudin, A., Rachmawati, I., Kuncoro, H. R., & Angretnowati, Y. (2022). Indonesia Green Mining Industry. European Journal of Development Studies, 2(5), 22–31. https://doi.org/10.24018/ejdevelop.2022.2.5.169
Sahin, Ö., Bax, K., Paterlini, S., & Czado, C. (2023). The pitfalls of (non-definitive) Environmental, Social, and Governance scoring methodology. Global Finance Journal, 56(September 2022). https://doi.org/10.1016/j.gfj.2022.100780
Savinova, E., Evans, C., Lèbre, Stringer, M., Azadi, M., & Valenta, R. K. (2023). Will global cobalt supply meet demand? The geological, mineral processing, production and geographic risk profile of cobalt. Resources, Conservation and Recycling, 190(September 2022). https://doi.org/10.1016/j.resconrec.2022.106855
Savio, R., D’Andrassi, E., & Ventimiglia, F. (2023). A Systematic Literature Review on ESG during the COVID-19 Pandemic. Sustainability (Switzerland), 15(3), 1–17. https://doi.org/10.3390/su15032020
Statistik, B. P. (2022). Penyediaan dan Penggunaan Fisik untuk Emisi GRK Indonesia (Ribu Ton). Badan Pusat Statistik.
Teja, N. (2023). Indonesia’s ESG profile scares off non-Chinese investment. Www.Fdiintelligence.Com. https://www.fdiintelligence.com/content/locations/global/asia-pacific/indonesia-s-esg-profile-scares-off-non-chinese-investment-82137
The Global Economy. (2023). Indonesia: Coal reserves. The Global Economy.Com.
Tim Teknis Liablity Committe Kemku. (2022). Apbn Kita Kinerja dan Fakta. Kemenku Republik Indonesia, 1–98.
Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a Methodology for Developing Evidence-Informed Management Knowledge by Means of Systematic Review. British Journal of Management, 14, 207–222. https://doi.org/10.1016/j.intman.2013.03.011
Valer Dávila, J. C., Galarza, V. G., & Monteverde, E. C. (2024). High-dimensional private and social optimal policy valuation model for non-renewable natural resource extraction projects for multivariate public policy decisions. Resources Policy, 96(August). https://doi.org/10.1016/j.resourpol.2024.105230
Vera-Burau, A., Pera, L. S., & Massanes, M. B. (2025). Integration of quantitative ESG factors in a mining project: Case studies of a quarry. Journal of Cleaner Production, 501(May 2024). https://doi.org/10.1016/j.jclepro.2025.145304
Woźniak, J. (2022). Corporate vs. Corporate foundation as a support tool in the area of social responsibility strategy – Polish mining case. Resources Policy, 77(July 2021). https://doi.org/10.1016/j.resourpol.2022.102659
Zhang, N., Yang, C., & Wang, S. (2024). Research progress and prospect of environmental, social and governance: A systematic literature review and bibliometric analysis. Journal of Cleaner Production, 447(February), 141489. https://doi.org/10.1016/j.jclepro.2024.141489
Published
2025-10-15
How to Cite
SURYAPUTRA, Muhammad Irsa et al.
ENHANCING SUSTAINABILITY AND COMPETITIVENESS IN INDONESIA’S MINING SECTOR: A SYSTEMATIC LITERATURE REVIEW OF ESG IMPLEMENTATION.
Proceedings of the International Conference of Islamic Economics and Business (ICONIES), [S.l.], v. 11, n. 1, p. 1147-1160, oct. 2025.
ISSN 2541-3333.
Available at: <https://conferences.uin-malang.ac.id/index.php/iconies/article/view/3356>. Date accessed: 12 may 2026.
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Articles
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