Jakarta – A coalition of environmental organisations from Indonesia and Korea in mid-March protested the cooperation between Hyundai Motor Company and PT Adaro Minerals Indonesia Tbk. In the memorandum of understanding (MoU), Hyundai will buy a maximum of 100,000 tons of aluminium per year from Adaro. Meanwhile, Adaro plans to build a new 1.1 GW coal-fired power plant as an energy source to produce aluminium.
Market Forces campaigner, Nabilla Gunawan, said that as many as 10 environmental organisations from Indonesia and Korea sent an objection letter to Hyundai on January 24, 2023. “They have expressed their concerns about the planned cooperation between Hyundai and Adaro. Until now Hyundai has not replied,” she said in a written statement.
Gunawan said, Hyundai’s cooperation with Adaro is contrary to Hyundai’s climate commitments. This is because Hyundai failed to take into account the consequences of building a new coal-fired power plant on the climate and environment. “Hyundai has reneged on its commitment to eco-friendly vehicles by using aluminium produced using new coal-fired power plants,” she added.
At the initial phase, Adaro’s smelter will use electricity from a new coal fired power plant, despite the company labelling the aluminium smelter project as an ‘environmentally friendly’. The average coal-powered plant in the world operates for 46 years, which means it will be difficult for Hyundai to reach its carbon neutral target by 2045, if it still relies on aluminium produced from Adaro’s coal-fired energy. (Hartatik)
Banner photo: Youths held a peaceful protest criticizing BNI as a national bank that is still funding coal companies. (Photo: Indonesia Digital Campaigner 350.org)