By: Apal Upadhyaya
Indonesia has more than quadrupled its nickel production in less than ten years, positioning the island nation to dominate the international nickel market. Nickel is necessary for the production of stainless steel and lithium-ion batteries found in essential everyday items like electric toothbrushes, laptops, computers, and cellphones. These batteries increasingly find use in next-generation technologies to power electric vehicles and e-bikes. Further, the demand for nickel is expected to increase 6-fold by 2030 fueled by growing demand for electric vehicles, a climate-friendly alternative form of transportation. Indonesia’s islands of Halmera and Sulawesi are home to the most identified nickel reserves in the country, making land there extremely lucrative for potential nickel mining companies.
However, because of the land’s overwhelming value, thousands of Indonesian pepper farmers and other landowners have reported their land being seized by mining companies. Police intimidate locals and sell private lands well below market value with little negotiation. Furthermore, while the Indonesian government paints its nickel mining initiatives as green and energy friendly, the seizing and excavating of lands has resulted in thousands of acres of deforestation. The little regard and respect the Indonesian government and mining companies have for the Indonesian people whose ancestral lands have been seized blatantly violates property and human rights. While Indonesia has made it its goal to disrupt the international nickel market, it has lost its sense to protect the rights of its people.
In Indonesia, formal land titles are difficult to acquire, especially for ancestral lands. In 2021, local governments began transferring land deeds to mining companies without the consent of the land’s residents. In one case, a widow and her family was given around $50 million Indonesian rupiah ($3,223) in exchange for the land. With the farm, the widow could make up to 6 million rupiah ($386) in one month from her harvests, and without her farm-based income, the widow has resorted to to selling cooked food at a stall to make a fraction of that income she would have made if she still had her land. Notably, these land deals and disputes are predatory and disproportionately affect Indonesia’s poorest populations. This exploitative approach to nickel mining is not going away. The number of land disputes increased from 1,520 conflicts between 2005-2015 to 2,939 conflicts between 2015-2023 under President Joko Widodo. This has affected 135,608 households, or close to one million people.
On the island of Gelam, which is part of the Kendawangan conservation area zone, local government officials claim that land deeds were only given to mining companies because of residents’ requests. Residents refute this claim and argue that they never willingly gave up their lands to mining companies. Local Indonesian governments and officials have abused the lack of land deeds among their poorest populations to better position themselves for success in future nickel mining operations. The Indonesian government has recently become a controlling shareholder of PT Vale Indonesia, one of the mining companies seizing land in Sulawesi. Thus, the government of Indonesia is complicit in this seizing of land affecting almost a million citizens. The government’s gross disregard of its own citizens violates the property rights and threatens the livelihoods of the millions of people who live off their land to gain a reliable income.
The Indonesian government frames this focus on nickel as a push towards clean energy, but massive deforestation and pollution undermines the government of President Joko Widodo’s goals. Over 13,173 acres (5,331 hectares) of forest have been cleared on Halmahera, driving away deer and boars and polluting the water of local rivers. PT Weda Bay Nickel, the largest nickel miner on Halmahera, has deforested 3,600 acres of forest as of 2022. Widodo has sought to support developing industries, hasten recognition of land ownership, and slow deforestation. However, based on the actions of mining groups backed by the Indonesian government, deforestation in Indonesia still continues.
While Indonesian nickel mining can make the nation a key player in the international nickel market, the violation of property and human rights to undertake such a project cannot be understated. Seizing and evicting people from ancestral lands for the sake of mine development is wrong. Excavating such lands in a way that pollutes key water sources and destabilizes the surrounding environment is wrong. Indonesian policymakers must stop issuing permits to mine and hold leaders accountable for violations of community members’ rights. If safeguards and restrictions do not materialize, the people of these islands will be displaced and the environment will be destroyed, both reduced to an afterthought of innovation.
