This report departs from an awareness that environmental, economic, and social impacts of geothermal energy business practices not only adversely influence the life of local communities but also link directly to their enjoyment of human rights. Thus, it is urgent to further scrutinize state protection of and corporate respect for human rights.
Drawing on the experiences of local communities in Nagari Pandai Sikek, West Sumatera, and Kepakisan Village, Central Java, as well as adequate study to existing literature, this report documents and presents several key findings. These include, first, the implementation of geothermal energy projects is found to be problematic both in its procedure and substance. Second, geothermal energy projects have adversely impacted the life of local communities. Third, vulnerable groups such as women and indigenous communities, and children also suffer those adverse impacts. Fourth, geothermal energy projects have caused specific human rights violations and/or infringements, particularly to the right to participation, the right to a clean, healthy, and sustainable environment, economic rights, the right to security, and the right to remedy, and the human rights of vulnerable groups—with particular concern for the rights of women, indigenous people, and children.
This report indicates that while the state fails to comply with global business and human rights standard in protecting the human rights of local communities, geothermal energy companies fail to meet their responsibility to respect human rights. This study argues that those human rights violations and/or infringements are largely attributable to the fact that Indonesian laws and regulations on geothermal energy prioritize business and investment pragmatism over compliance with human rights standards. The Law on Job Creation (UU Cipta Kerja) even takes the side to protect business interest at the expense of the human rights of local communities. This report also argues that geothermal energy project implementation is shaped by a political economy that concentrates benefits among a group of elites.
In conclusion, this report recommends the following: (1) evaluate geothermal energy business permits; (2) remedy the environmental, economic, and social impacts as well as human rights violations and/or infringements; (3) revise Law on Job Creation (UU Cipta Kerja); (4) revise the risk assessment methodology in business permit administration; (5) develop comprehensive human rights indicators that are integrated into hazard level assessment in business permit administration; (6) develop comprehensive guidance for mandatory human rights due diligence by integrating FPIC principles and an access to remedy framework for local communities; and (7) develop binding guidelines on FPIC implementation for business actors.
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