Jakarta, The PRAKARSA– The Indonesian nickel industry, currently experiencing a boom in massive expansion and downstreaming, is faced with a crucial paradigm: is the decarbonization strategy being developed strong enough to support economic ambitions while simultaneously addressing demands for social and ecological justice? This fundamental question formed the basis of discussions in the Policy Dialogue entitled “Equitable Decarbonization of the Nickel Industry” organized by the ResponsiBank Indonesia Coalition on Thursday (11/12) in Jakarta. The forum, which brought together representatives from the government (Ministry of Energy and Mineral Resources), industry (Indonesian Nickel Miners Association/APNI), civil society organizations (Satya Bumi), and academics (LPEM FEB UI), arose from concerns that the roadmap (roadmap) current decarbonization is still too focused on emission reduction figures (carbon-centric), thus ignoring the complex social, environmental and governance impacts in mining areas.
Decarbonization Roadmap: Between Technical Ambition and Ground Realities
In his remarks, the Executive Director of The PRAKARSAVictoria Fanggidae emphasized that while the government has prepared the technical foundation for emissions reduction, the reality on the ground shows minimal accommodation for the impacts on indigenous communities, deforestation, water pollution, and social conflict. "We need to strengthen implementation instruments that not only pursue carbon targets but also justice," she said.
This statement is reinforced by an in-depth presentation of policy recommendations titled "Integrating Social Aspects in Nickel Decarbonization." This policy paper commends the efforts of Bappenas and WRI in formulating a significant emission reduction target of 80,98% in the Indonesian Nickel Industry Decarbonization Roadmap 2025–2045. However, the document is considered too narrow. "The roadmap needs to transform from a purely economic approach," it added. carbon-centric "Towards a holistic framework that makes social, ecological, governance, and justice aspects the foundation, not just an addition," said Dwi Rahayu Ningrum, a researcher at The Sustainable Development PRAKARSA.
From Ecological Crisis to Gender Inequality
Furthermore, Dwi presented findings in the form of a series of data and realities on the ground that he believes are often overlooked in the mainstream discourse on nickel decarbonization. First, he highlighted the paradox of economic growth in nickel-producing regions. "We see the GRDP of North Maluku and Central Sulawesi soaring, but poverty rates are stagnant or increasing. This is clear evidence that this industry is capital-intensive and enclave"So the economic benefits don't trickle down to the local community," said Dwi. According to him, this industry has failed to create multiply effect which is expected.
Second, Dwi explained the existence of a systemic ecological crisis. He cited findings of hazardous heavy metal pollution such as Chromium VI and arsenic in waters, as well as coral reef damage due to sedimentation. "Furthermore, the risk of disasters such as flooding and landslides in industrial areas is also increasing. This is a real ecosystem carrying capacity crisis," he said.
Third, he expressed deep concern about employment conditions and equality. "In the past decade, 164 workplace accidents have been recorded, resulting in 135 fatalities. This indicates a systemic, not just a one-off, occupational health and safety emergency." human error" Dwi emphasized. On the other hand, women bear a double burden, from clean water crises and loss of livelihoods to discrimination in access to jobs in male-dominated sectors.
Fourth, Dwi warned of the risk of stranded investments (stranded assets) and attachment to carbon (carbon lock-in). He explained that saprolite nickel reserves are estimated to be exhausted in 2038, while green technology investment requires payback period "Furthermore, reliance on captive coal-fired power plants (PLTU) in remote smelter locations actually locks us into a pattern of high emissions, contradicting emission reduction targets," he explained.
Finally, Dwi criticized the public narrative that equates the entire nickel industry with the energy transition. He clarified that data shows that 70-80% of global nickel consumption is still for the conventional stainless steel industry, not electric car batteries. "If we provide fiscal incentives generically without considering the final value chain, we risk subsidizing industries that don't directly support decarbonization. Incentives must be selective, conditional, and targeted only at truly green activities," he concluded.
The dialogue then continued with a session of responses from various stakeholders. Dedi from the Ministry of Energy and Mineral Resources emphasized that the decarbonization roadmap is designed to balance downstreaming ambitions with the national climate commitments (NDCs). "The biggest challenge lies in emissions from smelters, which still rely on coal-fired power plants," he acknowledged. He stated the government's commitment to strengthening oversight, including by utilizing technology like drones. Furthermore, the government is preparing national ESG standards that are more appropriate to the Indonesian context. He explicitly distinguished between corporate social obligations within the regulatory framework. "Social costs are mandated in the RKAB and are binding, unlike CSR, which is voluntary," he emphasized.
From an industry perspective, APNI Secretary General Meidy Katrin Lengkey called for a broader discussion. "The discussion on decarbonization should not be limited to the upstream or mining sectors. The largest emissions are actually generated downstream, namely in the battery production process," she said. She expressed concern that global ESG standards are often contextual and burdensome, although her association states that members' compliance with basic standards has reached 78-91%. To increase accountability, APNI claims to have utilized the Internet of Things (IoT) and is developing an AI mining system for stricter internal monitoring.
Andi Muttaqien of Satya Bumi brings the voices of affected communities. He reports firsthand on findings from the field, including pollution, deforestation, and violations of regulations in areas such as Pomalaa and Kabaena Island. He urges that public health aspects and principles be addressed. Free, Prior, and Informed Consent (FPIC) integrated into policy. For Andi, ESG principles must have a deeper meaning. "ESG must be understood as respect for human rights, not merely administrative," he stressed.
Meanwhile, Andreas Alfonsus Saragih from LPEM FEB UI provided perspective by emphasizing the importance of comprehensive calculations. "We must include the costs of socio-ecological externalities (net social impact) which has not been internalized into nickel economic calculations," he explained. He encouraged the implementation of the framework just transition (just transition) and emphasizes the importance of coherence of incentive policies so as not to burden state finances (APBN).
The intensive dialogue concluded with the affirmation that the path to sustainable nickel decarbonization remains long and challenging. However, a commitment to continued dialogue and collaboration from all parties is a key asset. As the moderator concluded, "Socio-ecological integration is not an option, but the key to a truly successful transition. Without equity, decarbonization will simply shift the burden from the atmosphere to the shoulders of the most vulnerable communities," said Dea Mawesti, moderator of the discussion.
This activity is expected to be a lever for improving the roadmap and advocating for more inclusive policies, ensuring that Indonesia's energy transition leaves no one behind (leave no one behind).
