ASIATODAY.ID, JAKARTA – A member of Indonesia’s House of Representatives has warned that the development of the Indonesia Pomalaa Industrial Park (IPIP) in Southeast Sulawesi must avoid repeating the environmental and social problems that have long been associated with the Indonesia Morowali Industrial Park (IMIP) and the Indonesia Weda Bay Industrial Park (IWIP).
Ateng Sutisna, a lawmaker from Commission XII of the House of Representatives, said Indonesia’s nickel downstreaming strategy should prioritize sustainability and community welfare alongside economic growth and investment.
“The development of nickel industrial parks must learn from the challenges that are still occurring today in IMIP and IWIP,” Ateng said in a written statement on Tuesday.
Indonesia has emerged as a key player in the global energy transition supply chain, supported by its vast nickel reserves, a critical raw material for electric vehicle (EV) batteries. However, Ateng stressed that the success of downstream industrialization should not be measured solely by investment figures or export revenues.
IPIP is expected to become one of the world’s largest nickel processing and EV battery material hubs, covering approximately 11,000 hectares in Pomalaa, Kolaka Regency, Southeast Sulawesi.
The industrial complex will include integrated facilities such as a High-Pressure Acid Leaching (HPAL) nickel processing plant operated by PT Kolaka Nickel Indonesia (KNI), power generation facilities, a deep-sea port, and worker housing.
The project is backed by an international consortium that includes China’s Zhejiang Huayou Cobalt, Indonesia’s PT Vale Indonesia Tbk, and U.S.-based Ford Motor Company. Total investment is estimated at around US$4.5 billion, or more than Rp68 trillion, excluding additional supporting infrastructure.
Despite the project’s strategic importance, Ateng highlighted concerns raised by civil society groups regarding large-scale land clearing activities that could put pressure on forests and ecological buffer zones in the Pomalaa area.
While project developers have stated that land-clearing activities remain within the scope of their permits, Ateng emphasized that environmental protection must remain a key consideration throughout the development process.
“The key issue is not merely the numbers, but ensuring that development does not sacrifice ecological functions,” he said.
He also pointed to social impacts that have reportedly begun to affect communities surrounding the industrial area. Several villages have experienced disruptions to agricultural activities due to sedimentation and environmental changes affecting productive farmland.
According to Ateng, communities that have traditionally depended on agriculture and fisheries should not become the primary victims of industrial expansion.
“We do not want local communities to lose their living space and become entirely dependent on high-risk jobs in the industrial sector,” he said.
Ateng noted that environmental concerns, workplace safety issues, and social conflicts previously reported in IMIP and IWIP should serve as important lessons for all stakeholders involved in the IPIP development.
He argued that the true success of Indonesia’s nickel downstreaming program should not be determined solely by the number of smelters built, the size of investments secured, or export performance.
Instead, it should be measured by the country’s ability to balance industrial growth with environmental protection, respect for community rights, and improvements in local welfare.
“We must not allow newly developed industrial zones to leave behind the same legacy of damage seen in other industrial areas,” Ateng concluded. (AT Network)
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