REFLECTING INDONESIA’S NICKEL DOWNSTREAMING ACTIVITIES AND ITS SOCIAL AND ENVIRONMENTAL IMPACT IN SULAWESI (2014-2024)

Abstract

Indonesia is a nation with rich ecological diversity, especially mineral resources. With the ambition to increase their added value within the green energy transition, nickel downstreaming agenda then was initiated and pursued during President Joko Widodo administration, turning Indonesia as a strategic area for foreign investors especially China to build smelters and mine at, especially in Sulawesi Island where nickels are abundant. Starting off with nickel ore export ban then pushing for the smelters to be built domestically, the government had succeeded in boosting nickel’s product value – creating various economic and diplomatic benefits for the countries. However, behind the glitter of the benefits that the nickel downstreaming agenda has to offer, beneath lies a lot of social and environment impacts felt by the locals around the smelter and mining facilities. Starting from the land eviction and deforestation, the impacts then have rippled far beyond into reaching their livelihood (job) and even wellbeing (deteriorating and/or apparent health implications) – directly tied to the pollutions that are caused by the operations of the very same mining companies and smelters. Through EPE theory lens, this research will analyse to what extent the nickel downstreaming agenda in Sulawesi Island has caused have caused systemic harms in terms of social and environmental impacts.