Insights of Strategic Pathways for the Indonesian Mining Industry in the Green Energy Transition

Abstract

Abstract - Indonesia plays a pivotal role in the global energy transition due to its vast reserves of critical minerals, especially nickel, which are essential for electric vehicles and renewable technologies. This study examines Indonesia’s mining sector by grounding the analysis in two complementary theories: the Natural Resource-Based View (NRBV) and Institutional Theory. The NRBV highlights how environmental capabilities—such as pollution prevention, stewardship, and clean technology—generate competitive advantage through improved efficiency, reduced risk, and access to green markets. Institutional Theory explains how coercive policy shifts, normative ESG expectations, and mimetic industry dynamics influence mining practices in emerging markets. Using secondary data from Statista, BPS, and national reports (2014–2023), we analyze export-to-GDP elasticity, foreign direct investment, greenhouse gas emissions, and ESG benchmarking. A thematic coding of stakeholder discourse from the Indonesia Mining Summit 2024 further contextualizes institutional pressures. Findings reveal that post-2020 policy interventions (nickel ore export ban) significantly boosted exports and FDI, yet rising emissions and governance gaps constrain sustainable transformation. Theoretical integration shows that while NRBV-based capabilities create opportunities for ESG-driven competitiveness, institutional pressures shape the pace and direction of adoption. This study contributes to strategic management and sustainability literature by offering evidence-based insights for policymakers, investors, and mining firms navigating Indonesia’s pathway toward green industrialization.

Keywords - Mining, Energy Transition, ESG, Circular Economy, Indonesia, NRBV, Institutional Theory, Emerging Markets