While trekking up to his forest farm on the Indonesian island of Halmahera, Librek Loha was dismayed to find landslides once again plaguing the area. These destructive events have become all too common.
The mudslide near Loha’s cacao, nutmeg, and pineapple plantings revealed more orange, rocky soil, adding to the vast expanse of deforested land that now surrounds his farm. The once lush forest has been replaced by dusty warehouses, coal mountains, and silty brown rivers.
Weda Bay has transformed into one of the world’s largest nickel production hubs, with numerous smelters and coal-fired power plants operating around the clock. Indonesia’s push to dominate the global nickel supply has been successful, with a significant increase in nickel processing facilities in the last decade.
While nickel was once primarily used for stainless steel, the demand has surged due to its importance in electric vehicle batteries. As a result, developers have been rapidly constructing nickel-processing plants, leading to a two-fold increase in deforestation around these industrial sites, as reported by the Indonesian nonprofit Auriga.
Indonesia, with the world’s largest nickel reserves, has shifted focus from exporting raw nickel ore to refining it domestically. President Joko Widodo has supported this initiative, resulting in the co-location of nickel smelters with EV battery factories.
The detrimental impact on the environment is evident, with deforestation, water pollution, and habitat destruction becoming widespread. The waste from coal power plants further adds to the ecological challenges faced by local communities.
Villagers in areas like Lelilef Sawai have experienced firsthand the negative consequences of industrial expansion, with deforestation disrupting their way of life and degrading their surroundings. Despite promises of economic development and environmental responsibility by companies like PT Indonesia Weda Bay, the reality for many locals has been far from ideal.
Concerns over deforestation and environmental degradation have led some European companies to reconsider their investment in Indonesian nickel projects. While Indonesia continues to court major players like Tesla, there is growing scrutiny on the environmental footprint of nickel production.
Efforts to improve the sustainability of nickel production, such as transitioning to clean energy sources and monitoring supply chains closely, are seen as crucial steps towards mitigating the environmental impact. However, for villagers like Loha, Sigoro, and Ambar, who have seen their land and livelihoods affected by the nickel industry, the promised benefits have yet to materialize.
As questions linger about the environmental and social implications of Indonesia’s nickel boom, the voices of those directly impacted by these developments serve as a poignant reminder of the complex realities at play.