ASIATODAY.ID, JAKARTA — Indonesia’s ambitious drive to dominate the global nickel supply chain and power the clean energy transition is facing growing scrutiny after a new study by the Indonesian National Commission on Human Rights (Komnas HAM) concluded that the country has failed to adequately protect workers, local communities, and the environment in major nickel-producing regions.
The report, titled “The Impact of the Nickel Industry on Human Rights,” paints a troubling picture of the social and environmental costs associated with Indonesia’s rapidly expanding nickel sector, particularly in the industrial hubs of Morowali and North Morowali in Central Sulawesi.
As the world’s largest nickel producer, Indonesia has become a critical supplier for electric vehicle (EV) batteries and renewable energy technologies. The industry has attracted billions of dollars in foreign investment and has become a cornerstone of President Prabowo Subianto’s downstream industrialization strategy.
However, according to Komnas HAM, the economic gains generated by the nickel industry have been accompanied by serious human rights concerns, including workplace fatalities, environmental degradation, public health risks, and weak government oversight.
Human Rights Concerns Behind the Energy Transition
The report highlights what it describes as a growing paradox in the global clean energy transition.
While nickel is considered a strategic mineral essential for reducing global carbon emissions, its extraction and processing have created significant risks for workers and communities living near mining and smelting operations.
Komnas HAM argues that the transition to cleaner energy should not come at the expense of fundamental human rights.
The study was launched in response to increasing complaints filed by communities affected by nickel mining and processing activities. Between January 2020 and June 2025, Central Sulawesi recorded the highest number of human rights-related complaints linked to the nickel industry, with corporations emerging as the most frequently reported entities, followed by government institutions.
Worker Safety Under Scrutiny
One of the report’s most significant findings concerns labor rights and occupational safety.
Komnas HAM points to the deadly explosion at a smelter operated by PT Indonesia Tsingshan Stainless Steel (ITSS) within the Indonesia Morowali Industrial Park (IMIP) on December 24, 2023. The accident killed 21 workers, including 13 Indonesians and eight Chinese nationals, and injured dozens more.
The commission argues that the incident exposed serious shortcomings in occupational health and safety standards within Indonesia’s nickel processing sector.
Investigators also documented complaints regarding inadequate personal protective equipment (PPE), high workplace risks, and concerns about unequal treatment between local workers and foreign employees. Workers reported disparities in wages, housing, and workplace facilities despite performing similar roles.
The report further warns that the male-dominated nature of the mining industry creates additional vulnerabilities for women workers, including risks of discrimination, harassment, and gender-based violence.
Rising Pollution and Public Health Risks
Environmental and health impacts feature prominently in the report.
According to Komnas HAM, extensive open-pit mining activities have transformed landscapes, accelerated deforestation, increased sedimentation in rivers and coastal areas, and contributed to deteriorating environmental conditions.
Air pollution has emerged as a particular concern. The commission identified emissions from nickel smelters, coal-fired power plants supporting industrial operations, and metal dust generated by mining activities as significant contributors to declining air quality.
One of the report’s most alarming findings is the prevalence of respiratory illnesses in Morowali. By January 2025, the district had recorded 51,850 cases of Acute Respiratory Infections (ARI), the highest figure reported nationwide.
The study suggests that industrial emissions and airborne particulate pollution may be contributing factors behind the surge in respiratory diseases among local residents.
Deforestation and Water Contamination
The report also highlights substantial environmental losses linked to the expansion of nickel operations.
Deforestation in key nickel-producing areas reportedly increased from 3,565.8 hectares in 2016 to 11,355 hectares in 2020, reflecting the rapid growth of mining and industrial development.
Communities living near mining sites have reported discoloration of rivers and coastal waters, while environmental monitoring identified wastewater indicators exceeding regulatory thresholds in some locations.
Komnas HAM notes that elevated levels of Biochemical Oxygen Demand (BOD) could threaten aquatic ecosystems and undermine local livelihoods dependent on clean water resources.
The commission stresses that environmental damage extends beyond ecological concerns and directly affects the rights of communities to health, clean water, and a healthy environment.
Government Oversight Questioned
A major theme throughout the study is the perceived weakness of government supervision.
Indonesia already has a comprehensive regulatory framework governing mining operations, including Good Mining Practice standards, environmental requirements, occupational safety regulations, and oversight by Mining Inspectors.
Nevertheless, Komnas HAM concludes that implementation remains inadequate.
The report argues that the number of inspectors is insufficient relative to the scale and complexity of Indonesia’s rapidly expanding nickel industry. As a result, oversight often focuses on administrative compliance rather than direct field inspections, allowing recurring safety and environmental problems to persist.
The commission warns that this gap between regulatory authority and enforcement has undermined the state’s ability to prevent human rights violations.
Corporate Responsibility Beyond Compliance
Komnas HAM emphasizes that mining companies must move beyond legal compliance and adopt a broader commitment to human rights.
Drawing on the United Nations Guiding Principles on Business and Human Rights (UNGPs), the report states that companies have a responsibility to respect human rights, conduct human rights due diligence, prevent adverse impacts, and provide remedies when harm occurs.
The study also links these responsibilities to Environmental, Social, and Governance (ESG) standards, arguing that corporate success should be measured not only by profits and exports but also by environmental stewardship, worker protection, and community well-being.
Calls for Reform
The commission has issued recommendations to the President, Parliament, government ministries, local authorities, mining companies, civil society organizations, and affected communities.
Among its key recommendations are stronger integration of human rights principles into Indonesia’s nickel industrialization policies, enhanced environmental and labor inspections, stricter occupational safety standards, improved healthcare services for workers and residents, and effective remediation for environmental and social harm.
For Komnas HAM, the future of Indonesia’s nickel industry should not be judged solely by export revenues, investment inflows, or its role in the global EV supply chain.
Instead, the report argues, long-term success must also be measured by whether economic growth can coexist with respect for human rights, safe working conditions, environmental sustainability, and meaningful protection for communities living on the front lines of the global energy transition. (AT Network)
Follow Us at Google News and WA Channel