AEER urges restrictions on nickel production for environment, equitable energy transition

Jakarta – The Ecological Action and Emancipation of the People (AEER) organisation urged the government to immediately limit nickel production in Indonesia on Monday, December 16. Apart from aiming to improve the governance of the nickel industry, this policy is considered urgent to encourage an equitable energy transition and minimise environmental and social impacts due to rampant nickel mining.

The urgency arose in response to the discourse on limiting nickel production, which officials from the Ministry of Energy and Mineral Resources (MEMR) mentioned. However, the timing of the policy’s implementation is not yet clear.

AEER Coordinator Pius Ginting emphasised that this step is not just a matter of boosting nickel prices but rather the urgency of fixing the negative impacts of an industry that continues to grow rapidly. “Excessive nickel production without good governance has ignored environmental and social aspects. This is not the energy transition we want,” said Pius.

Based on AEER’s 2024 research, nickel mining activities in Sulawesi, especially Morowali and North Morowali, have brought several serious problems. In addition to environmental damage, labour issues have also risen sharply.

“In the period 2023 to 2024, 36 workers were killed, and 47 others were injured due to work accidents. This situation occurs amid labour exploitation practices, such as low wages, excessive working hours, and poor OHS standards,” said Pius.

He added that workers often face unilateral company policies, ranging from termination of employment (PHK) to non-transparent salary cuts. On the other hand, local communities that previously depended on the agriculture and fisheries sectors had to sell their land or turn into mining labourers with poor working conditions.

The issue of waste from nickel mining activities is also a concern for AEER. According to Pius, every ton of nickel processed produces at least 1.5 tons of waste. “In Morowali, 600 hectares of land have been reserved for industrial waste disposal. However, this is not a sustainable long-term solution,” he said.

In addition, the nickel industry in Indonesia still relies on coal energy as the main source of electricity. With these problems, AEER encourages the government to adjust nickel production levels based on the carrying capacity of available renewable energy. (Hartatik)

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