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View all search resultsRI nickel lacks sufficient environmental oversight
Experts say more needs to be done to properly fix nickel industry governance in the country, including stricter supervision and recalibration of its downstreaming push.
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This aerial handout picture taken on Dec. 22, 2024, by Auriga Nusantara and released on Jan. 31, 2025, shows a general view of deforestation on Gag Island in Raja Ampat, Southwest Papua province. (AFP/Auriga Nusantara)
T
he government has taken measures to address environmental concerns over nickel mining activity in Raja Ampat, albeit not entirely what activists were expecting. Experts say more needs to be done to properly fix nickel industry governance in the country, including stricter supervision and recalibration of its downstreaming push.
Indonesia controls a large share of the world’s nickel reserves, giving it a strong bargaining position when it comes to attracting foreign investment, especially from companies that need nickel for things like electric vehicle batteries.
However, instead of leveraging that advantage to enforce strict development standards, such as environmental safeguards, local content rules or labor protections, the country has allowed foreign companies to invest in nickel downstreaming projects with minimal restrictions, Putra Adhiguna, managing director at the Energy Shift Institute, pointed out
“Indonesia opened the floodgates to downstream investment with few restraints, missing the opportunity to demand higher development standards,” he told The Jakarta Post on Thursday.
This was important given a considerable number of nickel mining concessions, particularly in areas like Halmahera, North Maluku, and its surrounding islands, are situated in protected and production forest areas, according to Forest Watch Indonesia (FWI). Mining activities have also been observed on smaller islands, despite regulations prohibiting mining operations on islands smaller than 2,000 square kilometers.
Putra suggested that the Indonesian government reevaluate whether additional supply is necessary in an already saturated nickel market and ensure that any new mining projects adhere to higher standards of transparency and labor practices, many of which are defined by established global industry frameworks.
Read also: Govt stops short of halting all nickel mining in Raja Ampat
