Indonesia’s Bauxite Geoeconomics and the Challenge of Green Standards
Keywords:
Bauxite Geoeconomics, Resource Nationalism, Green Governance, Global Production Networks, Energy TransitionAbstract
This article examines Indonesia’s bauxite downstreaming policy within the dynamics of global geoeconomics and emerging green governance standards. Using a qualitative political economy approach and the Global Production Networks (GPN) 2.0 framework, the study analyzes how resource nationalism, strategic coupling with foreign capital, and coal-dependent industrialization shape Indonesia’s position in the global bauxite value chain. The findings show that although downstreaming policies strengthen domestic industrial capacity and increase state control over mineral resources, they also create structural vulnerabilities due to technological dependence, carbon-intensive smelter operations, and exposure to global green standards such as CBAM and ESG certification. The study introduces the concept of the “green standard transmission gap” (GSTG) to explain the disconnect between national industrial ambitions and transnational sustainability requirements. The article argues that Indonesia’s long-term competitiveness depends on its ability to integrate industrial sovereignty with low-carbon transition strategies and internationally recognized environmental governance standards.
Abstrak
Artikel ini mengkaji kebijakan hilirisasi bauksit Indonesia dalam dinamika geoekonomi global dan perkembangan standar tata kelola hijau internasional. Dengan menggunakan pendekatan ekonomi politik kualitatif dan kerangka Global Production Networks (GPN) 2.0, penelitian ini menganalisis bagaimana nasionalisme sumber daya, strategic coupling dengan modal asing, dan industrialisasi berbasis batu bara membentuk posisi Indonesia dalam rantai nilai bauksit global. Temuan penelitian menunjukkan bahwa meskipun kebijakan hilirisasi memperkuat kapasitas industri domestik dan kontrol negara atas sumber daya mineral, kebijakan tersebut juga menghasilkan kerentanan struktural akibat ketergantungan teknologi, operasi smelter berintensitas karbon tinggi, dan paparan terhadap standar hijau global seperti CBAM dan sertifikasi ESG. Penelitian ini memperkenalkan konsep “green standard transmission gap” (GSTG) untuk menjelaskan ketidaksesuaian antara ambisi industrialisasi nasional dan tuntutan keberlanjutan transnasional. Artikel ini menegaskan bahwa daya saing jangka panjang Indonesia bergantung pada kemampuan mengintegrasikan kedaulatan industri dengan strategi transisi rendah karbon dan standar tata kelola lingkungan global.
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