Indonesia’s flourishing nickel mining industry is at the heart of global shifts toward electric vehicles and renewable energy but is coming at great social and environmental costs. The country boasts the largest nickel reserves globally, mostly found on the islands of Sulawesi and Halmahera. Nevertheless, this boom has not been without ramifications for local communities.
With the rise of electric vehicle (EV) production, which heavily relies on nickel for battery components, demand for this mineral has surged significantly. But the locals face grim realities as mining companies have been granted access to vast stretches of land. Reports suggest nearly three-quarters of Kabaena Island, where nickel mines are being developed, is now earmarked for extraction activities.
“All we see is mud and flooding,” provides Sahrul, who is at the forefront of local resistance efforts against mining. He has witnessed firsthand the degradation of the environment. Sahrul explains how the community is now pitted against itself, where supporters of mining clash with those who understand its damaging consequences.
The environmental fallout is stark, with residents like Amal, a tourism student, indicating the adverse effects on their natural resources. “The mining company broke our forests. They made us lose our river. Water is the main point of life; we get it from nature. But we’re losing it,” he laments.
Indeed, studies show alarming trends of deforestation, with nickel mining becoming the leading cause of losing forest cover across the mining provinces. Out of the 920,000 hectares of nickel mining land, around two-thirds remains under forest cover, considerably impacting biodiversity and the traditional practices of Indigenous communities.
Mining operations have also severely polluted local water sources. A report from local NGO Satya Bumi documented widespread contamination of rivers and seas near mining sites, resulting in declining fish stocks and increasing skin infections among local children. Particularly at risk is the Bajau community, which identifies as the ‘Sea Nomads,’ renowned for their extraordinary skills in free-diving. Their livelihoods are intimately tied to the health of these marine ecosystems.
While Indonesia’s nickel industry is largely driven by foreign investments, especially from battery manufacturers and electric vehicle giants, local communities often find themselves at the mercies of these corporate interests. China, for example, has heavily invested since the country banned raw nickel exports back in 2020. This has led to over $15 billion worth of agreements with major international companies, but the visible benefits for locals remain elusive, overshadowed by ecological destruction.
International firms such as BASF and Eramet withdrew from significant mining projects due to their detrimental impacts on Indigenous tribes, showing some awareness of social responsibility. Yet, as companies continue to exploit Indonesia’s mineral wealth, the local populations struggle to cope with the sociocultural and environmental fallout.
The urge to transition toward greener technology is clear. Even as the European Union races to secure access to ‘critical raw materials,’ concerns about social equity and environmental responsibilities linger. EU officials are negotiating free trade agreements with Indonesia, emphasizing the need for raw materials for their green investments.
Activists urge not only for transparency but also for more conscientious investment structures. “If you want to buy an electric car, sure. It may be comfortable for you,” warns Tamrin, who operates a coffee shop on Kabaena. “But think about where these materials come from and the toll on our land.” The balance between green ambitions and preserving local lives and environments remains precarious.
Importantly, NGOs like Auriga Nusantara are calling for ‘No Go Zones’ to eliminate forest and biodiversity losses. Such initiatives aim to protect areas from industrial clearance, but whether this will be implemented remains to be seen. Local communities deserve to have their voices heard, and their rights must be recognized, especially the principles of Free, Prior, and Inform Consent (FPIC) must be respected, according to international human rights standards.
Without active and responsible interventions to safeguard both the people and the environment, the narrative surrounding Indonesia's nickel industry will be intertwined with stories of loss and hardship. For the locals, the mined minerals are not just commodities; they are representative of their future, affecting generations to come.
Each time there’s talk about electric vehicles and the greener future they promise, one must not forget those affected at the very foundations of this transition. If changes aren’t made, the green revolution we speak about may come at the cost of Indonesia’s rich cultural diversity and exquisite natural beauty.