Sustainability


How to ensure nickel sector is


P


resident Joko “Jokowi” Widodo’s ambition to turn Indonesia into a global hub for electric vehicle (EV) battery production has thrust


the nation’s mining commodities, particularly nickel, into the spotlight.


Since a 2020 law ordering the processing of mining commodities into more valuable, marketable products (downstreaming), Indonesia’s nickel production and export have surged sharply. More is expected in the coming years as the government aims to have 30 new nickel smelters operational this year, a significant addition from 13 smelters in construction by mid-2023.


Indonesia’s sustainable


Controversies haunt Indonesia’s ambition for nickel processing. Is it time Indonesia moved away from the supplying electric vehicle battery material narrative and focused on sustainability? Anggi M Lubis and Robby Irfany Maqoma investigate.


However, controversies surrounding Indonesia’s nickel sector are difficult to ignore. Environmental and social impacts of nickel mining and processing – from deforestation, biodiversity loss, water and air pollution and the displacement of local communities – frequently make headlines. Additionally, the tumult caused by Indonesia’s nickel export ban, which led to a 2021 lawsuit at the World Trade Organisation, and the collapse of nickel prices due to oversupply have been notable. Issues around the country’s nickel industry were also politicised during the 2024 presidential election as


World Mining Frontiers / www.nsenergybusiness.com


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