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Indonesia’s Nickel: The Trail of Destruction

Text : Hasya Nindita
Photo : Ulet Ifansasti & Muhammad Fadli
Editor: Zhu (Bahasa Indonesia), Muhammad Fadli (English)
Saturday, 19 October 2024

The sound of a flat-bottomed canoe’s diesel engine roared through the murky seawater. At eleven o’clock that afternoon, Joko returned from fishing. Seven hours earlier, Joko had set sail armed with the bait of a fish and four litres of diesel worth one hundred thousand rupiahs. He traveled ten kilometres to sea and waited five hours for his catch.

 

He didn’t have a lot to catch, just a few red snapper and skipjack tuna, weighing only two kilograms altogether. The 49-year-old passed the catch over to his wife, who expertly placed all the fish into a dark green basin. “It’s just too little, we can’t sell it, it’s just for our own food,” said Joko laughing bitterly.

Pedi, a Bajau fisherman, at the muddy shoreline in the fishing village of Tapunggaya, North Konawe, Southeast Sulawesi, Indonesia. Bajau community who live in Tapunggyaea and depend their livelihood on fishing suffer greatly from the presence of nickel mines in the area. Mining-related activities pollute the water and destroy marine life. These days, they have to travel further away in order to be able to catch fishes. This situation never happened until a little more than decade ago when nickel exploitation began for the first time.
Lapola (middle) and Mega (right) with their children at home in Tapunggayea. Lapola is one among many locals who currently work in nickel-mine related jobs. Fishery used to be the major income for the locals until nickel started to be exploited. As for now, about 80% of adult males have jobs in mining-related work, although most are limited to low level works.
Nickel mines operated by different companies surround the fishing villages of Tapuemea and Tapunggayea, two major settlements located at the shore of Lasolo Bay, North Konawe, Southeast Sulawesi, Indonesia.

Joko’s home is in Kurisa, which is one of the Bajau people’s fishing villages on the shore of the Banda Sea. Years ago, the waters in Kurisa were clear. The coral reefs were healthy and the fish were abundant. “In the past, we only had to spread the net under the house, wait for an hour, and get 10 kilos. I’m grateful to be able to bring home five kilos of fish now,” says Joko.

The sea around Kurisa is no longer the same. As part of Bahodopi District, Morowali, Central Sulawesi, Kurisa is located exactly at the heart of the the largest nickel processing center in Indonesia and Southeast Asia: Indonesia Morowali Industrial Park (IMIP).

A worker shows Nickel Sulfate at a nickel processing facility operated by Harita Nickel in Obi Island, North Maluku, Indonesia (April 2023).
Stockpiles of raw ore at a nickel processing facility operated by Harita Nickel in Obi Island (April 2023).

According to the National Mineral and Coal Management Plan 2022-2027’s release, Indonesia’s nickel reserves totalled 5,2 billion tonnes of ore and 57 million tonnes of metal. This is equivalent to 23% of the world’s nickel reserves. The increasing demand for nickel in the global electric vehicle supply chain has encouraged the Indonesian government to boost nickel production. In 2023 alone, Indonesia has produced 1,8 million metric tonnes of nickel. This amount is equivalent to 50% of global nickel production.

The high production figure is supported by the performance of nickel industrial estates, such as IMIP in Central Sulawesi, Indonesia Weda Bay Industrial Park (IWIP) in the Weda Bay – Central Halmahera area, Sorowako Block in South Sulawesi, Gag Island mine in West Papua to Kawasi mine on Obi Island. According to data from the Geological Agency of the Ministry of Energy and Mineral Resources (ESDM), two million hectares of land in Indonesia have nickel potential and 800,000 hectares have been exploited and obtained Mining Business Licences (IUP).

Chinese workers are at QMB New Energy Materials, which is situated in the Indonesia Morowali Industrial Park (IMIP) in Morowali, Central Sulawesi, Indonesia (July 2023).
A chinese worker is at nickel processing operated by PT Huayue Nickel Cobalt, located in the Indonesia Morowali Industrial Park (IMIP) in Morowali, Central Sulawesi, Indonesia (July 2023).

The presence of nickel industrial estates has changed the surrounding environment. The hills of Bahodopi, which were once lush and green, have now turned into giant brown mounds that, when it rains, pollute irrigated rice fields and rivers. Smoke pollution from the smelter’s furnaces has turned the sky grey with black dust blowing in the wind.

Hot water discharges from the turbines of the coal-powered steam power plant (PLTU) that supplies electricity to the industrial estate flow directly into the sea causing water temperatures to rise, damaging the corals and driving the fish out from the bay.

] A rich deposit at a newly-exploited site for nickel mining owned by PT. Aneka Tambang Tbk (ANTAM) in Pomalaa, Southeast Sulawesi. The company has been operating in the area since 1968, mining nickel from a combined total area of 6,000 ha. The company is one among four Indonesian State-Owned Companies that came together as the stakeholders for the creation of Indonesia Battery Corporation (IBC), with each owning a 25 percent stake.

On top of that, the Indonesian Forum for the Environment (Walhi) Southeast Sulawesi reported in February 2024 that rivers around industrial areas and nickel mines are at risk of being exposed to hexavalent chromium, a form of compound from industrial processes. This compound may cause respiratory problems, nasal itching and nosebleeds, skin rashes, kidney pain, carcinogenic effects, weakened immunity, and life-threatening conditions. This exposure is dangerous considering that until now, many local people still use river as a daily water source for activities such as bathing and washing clothes.

Mongabay wrote that waters in Obi Island and Weda Bay contain heavy metals such as iron, nickel, and mercury. What’s worse, this nickel mining activity has also caused the loss of several water sources. The disposal of industrial waste has also caused 12 marine biota to be polluted with heavy metals and damaging mangrove ecosystems, coral reefs, and fishery resources that are a source of food for local communities.

Barges carrying raw nickel on one of the beaches in Tapunggayea, North Konawe, Southeast Sulawesi.
A view of Kawasi village near the nickel processing complex operated by Harita Nickel in Obi Island, North Maluku, Indonesia (April 2023).

Now, the fishing boats that used to crowd the sea traffic in Kurisa Village have been replaced by large barges carrying coal and nickel ore. These barges set off from various nickel mines in Sulawesi, one of which is from the Mandiodo Block in North Konawe, Southeast Sulawesi. Although located far away from IMIP, the fishing villages on the coast of North Konawe have the same fate as Kurisa Village.

“The sea water has become murky, if you go to sea, you definitely won’t get any fish, there are no more options aside from working in the mines,” said Lapola, a resident of Tapunggaya Village, North Konawe.

Hajir, a flagman for road safety, waits at his wooden hut for passing dump trucks transporting nickel ore from the nearby mines onto a barge which anchored near the fishing village of Mandiodo, North Konawe, Southeast Sulawesi. Occasionally, he has to work until midnight when the company he works for pushes the production to meet the growing demand.
Workers are transported as they work to build a nickel processing construction in the Indonesia Morowali Industrial Park (IMIP) in Morowali, Central Sulawesi (July 2023).
Workers queue wait for shuttle buses in the Indonesia Morowali Industrial Park (IMIP) in Morowali, Central Sulawesi, Indonesia (July 2023).

The seawater around Lapola’s village has turned brown due to mining activities. Thick dust has also coated the asphalt and floors of villagers’ houses. Lapola said that the number of residents in his village is decreasing. This is due not only to the environmental conditions that make the village increasingly unlivable but also because being a fisherman is no longer a bearable option for villagers. The fish have all but disappeared from the waters around the village, making it difficult for fishermen to earn a living.

“The young people have migrated and left the village to find work in the mines or nickel factories. Now, only the old people are left who sometimes still try to go to sea because they can’t afford to work in the mines,” Lapola explained. Like other Tapunggaya youths, this 36-year-old man has also switched professions to become a mine worker in Mandiodo Block.

Two inhabitant of a boarding house chat as smog rises from Chinese-backed Virtue Dragon Nickel Industry (VDNI) nickel processing plant in Konawe, South Sulawesi. VDNI is one of the current most important players in Indonesia's nickel industry. Although the presence of VDNI in the area has a great impact on the local economy, the environmental cost is really high. The pollution from VDNI, mainly comes from coal-powered power plants and nickel processing, has potentially serious health impacts.

Besides Mandiodo Block, IMIP is the destination of choice for young people from the village to work. No wonder Bahopodi’s population has increased dramatically.

The Central Bureau of Statistics has data showing that in 2017, only 7.517 people were living in Bahopodi, with the number rising to around 50,000 by 2022. This population boom has led to a surge in the boarding house business.

Boarding houses have crammed every corner of Bahodopi, built in a hurry, clustered around the IMIP area. Some other empty lands have been transformed into car parks. And food stalls popping up all over the place.

Worker tends the casting process of ferronickel shot at PT. Aneka Tambang Tbk (ANTAM) ferronickel smelter in Pomalaa, Southeast Sulawesi. Based on data from the US Geology Survey, Indonesia has the world’s largest reserves of nickel and supplies 29% of the global demand.
Workers of PT. Indonesia Morowali Industrial Park (IMIP) clog the streets of Bahodopi during the start of work shift, Bahodopi, Morowali Regency, Central Sulawesi, Indonesia. Established in 2013, IMIP has been consistently dominating the Indonesian nickel industry at around 50% from total national production since 2018. Currently, IMIP employs around 44,000 people, in which 37,800 are local Indonesian and 6,000 are foreign workers mainly from China.

As the sun started to set, heavy traffic congestion formed around IMIP. Tens of thousands of workers in grey uniforms with yellow helmets on their heads passed on, mostly with two-wheeled motorbikes. Some were rushing home, while others were chasing the night shift. Some of them stopped for a moment at the small grocery stalls at the roadside just to sit or drink cold drinks.

In the distance, a thick plume of smoke was released from the smelter’s giant chimneys. It billows into the air, bleaching the early evening orange sky.

A view of the ferronickel smelter at the nickel processing complex operated by Harita Nickel in Obi Island, North Maluku, Indonesia (April 2023).

Translated by: Astrid Reza

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