Palu, October 9, 2024—The Indonesian National Conference on Critical Minerals (KNMKI), entitled “Critical Review of the Nickel Mining and Downstream Industry with a Social and Environmental Justice Perspective,” was initiated by 15 civil society organizations that are very concerned about social and environmental justice issues in the nickel mining sector. This conference aims to critically examine aspects of social justice, the environment, and governance practices of the critical mineral mining industry in Indonesia.
This conference is a forum for all parties to listen to each other and share views, hoping to create a better and more sustainable future for all. Linda Rosalina, as Chair of the KNMKI Committee, expressed this shared spirit firmly, “This conference confirms our seriousness in nickel advocacy work and the commitment of all parties present to fight for a more just, sustainable nickel industry governance that prioritizes the rights of local communities and the environment.”
As Indonesia seeks to become a key player in the global nickel supply chain, especially in the energy transition context, nickel downstreaming continues to cause severe environmental and social problems. According to Pius Ginting, Director of Aksi Ecologi dan Emansipasi Rakyat (AEER), the nickel processing industry is the largest electricity user in Sulawesi, the majority of which still relies on coal-fired power plants. These power plants have caused significant air and water pollution, harming local communities.
To address this issue, Pius emphasized the need to develop an interconnected Sulawesi transmission network to increase the use of renewable energy in industrial areas. “In addition, nickel production needs to be slowed down through the implementation of a limited Current Year Work Plan and Budget (RKAB) so that it is in line with the development of renewable energy support,” said Pius. According to him, this step is essential to reduce the environmental impact of local residents, especially those living around the mining area.
Furthermore, Pius emphasized the importance of protecting residents’ rights affected by renewable energy development. “The development of renewable energy with a connected grid in Sulawesi must be carried out by protecting the living space and rights of residents, especially those living around hydroelectric power plants, solar power plants, and wind farms and other renewable energy sources,” he added. This effort is expected to balance industrial energy needs, environmental protection, and local communities’ rights.
The mining sector, especially the nickel industry, is known to have very high work risks. Various hazards inherent in work, such as work accidents and negligence in implementing Occupational Health and Safety (K3), often pose a serious threat to workers. One real example is the repeated incidents such as a furnace explosion at a smelter facility. This incident shows the weak supervision and implementation of strict safety procedures at the work site.
Iwan Kusnawan, General Chairperson of the Central Leadership Council of the National Workers Union (DPP SPN), highlighted that several work accidents have occurred in this sector without any in-depth investigation by the relevant parties. “As a result, every time there are victims in the incident, the handling given is only normative, limited to providing health and employment insurance as participants, without touching on aspects of prevention and enforcement of further responsibility. This shows a lack of serious attention from companies and the government to protecting the safety of workers in high-risk industries,” explained Iwan.
The problem of human rights violations in the Indonesian labor sector, especially in the nickel industry, is systemic and requires a comprehensive approach. According to Leony Sondang Suryani, a researcher at the Djokosoetono Research Center, University of Indonesia (DRC UI), violations are not only caused by company actions but also related to the government’s role in protecting the basic rights of workers. Three legal aspects contribute to this problem: legal substance, legal structure, and legal culture.
“Although Indonesia already has labor regulations, they still do not fully accommodate the interests of workers and create loopholes for human rights violations. The legal structure, related to the implementation and enforcement of the law, is often not optimal, both in providing strict sanctions against companies and in prioritizing workers’ rights. The existing legal culture does not encourage progressive law enforcement,” added Leony.
Therefore, comprehensive reform in every aspect of the legal system is needed so that labor rights can be protected effectively, and for companies, especially in the nickel sector, to comply with better human rights standards. In this context, the urgency of tightening environmental regulations and clean energy transitions is becoming increasingly important. Fajri Fadhillah, Head of the Pollution and Environmental Damage Control Division of the Indonesian Center for Environmental Law (ICEL), emphasized that concrete steps must be taken immediately by the Prabowo-Gibran Administration. According to Fajri, tightening environmental standards for nickel mines and smelters and strengthening law enforcement must be the main priorities of government policy.
“In addition, the Prabowo-Gibran Administration and the new cabinet will need to prioritize a roadmap for replacing captive PLTUs with renewable energy generators. With the right roadmap, two benefits can be obtained from these policies: improving the health of people living around mines and smelters and increasing Indonesia’s bargaining position compared to other nickel producing countries in the global nickel supply chain,” added Fajri.
CELIOS Executive Director, Bhima Yudhistira, explained that although nickel downstreaming has brought economic benefits on a national scale, the profit sharing received by nickel producing regions is in reality relatively small. This is due to the industrial area model that is in the National Strategic Project (PSN), where most of the economic benefits are centered on the central government and large companies, while regions directly affected by mining activities only receive a very limited share.
“In addition, the profit sharing in nickel producing regions is not comparable to the cost of rehabilitating the environment damaged by mining activities, to pollution from coal-fired power plants. Local governments need to increase their fiscal capacity both from the allocation of regional transfer funds, and from alternative economic sources other than mining and smelters.” added Bhima.
The impact of the mining industry, especially sand and nickel mining, not only directly damages the environment, but also destroys the socio-economic life of local communities. One of the residents of Tompira Village, Murniati, described how difficult the conditions faced by fishing communities are. “Sand and nickel mining activities greatly disrupt our lives, especially the Meti fishermen who earn a living for their families every day,” said Murni.
The Laah River, which used to be the main place for fishermen to catch meti – a local specialty – is now severely damaged by sand mining that has removed its natural habitat and damaged the river’s ecosystem. “Meti is decreasing day by day, and now the river is filled with sand due to mining. We as a community, especially fishermen, are very disadvantaged,” Murni added.
These steps will not only provide a fairer balance for the region, but also allow local governments to be more proactive in managing the environmental and social impacts of the nickel industry. With stronger fiscal, they can invest in sustainable development projects that support renewable energy, reduce dependence on coal, and improve the quality of life for communities around mining areas.
Media Contact:
Annisa N. Fadhilah – Tuk Indonesia, 087884446640
Arie Utami – Indonesia Cerah, 08111770920
Photos can be downloaded here: https://drive.google.com/drive/folders/1419oF8WqnVNZ2_3aU5_1fQxZdcK8D44O?usp=drive_link
Organizers:
- TuK INDONESIA
- Indonesia CERAH
- CELIOS
- Inkrispena
- Yayasan Masyarakat Kehutanan Lestari (YMKL)
- Aksi Emansipasi dan Ecologi Rakyat (AEER)
- Indonesia Center for Environmental Law (ICEL)
- Trend Asia
- Yayasan Tanah Merdeka (YTM)
- Sahita Institute (HINTS)
- CNV International
- ResponsiBank Indonesia
- Djokosoetono Research Center
- Publish What You Pay Indonesia (PWYP)
- Jaringan Advokasi Tambang Sulawesi Tengah (JATAM Sulteng)