Indonesia and Nickel: Tracing the Path of Sustainability Through ESG Implementation – by Tuhu Nugraha(Modern Diplomacy – November 9, 2023)


Nickel is an essential element in the global industry, used in the production of everything from stainless steel to electric car batteries. In line with the global shift towards green vehicles and the growing need for rechargeable batteries, the International Energy Agency (IEA) predicts that the demand for nickel will increase by at least 65% by 2030.

As the world’s largest nickel producer, Indonesia is expected to meet two-thirds of the global nickel needs, with billion-dollar investment agreements already in place to develop both processing plants and mining operations.

However, this surge in the industry also brings significant challenges in environmental, social, and corporate governance (ESG) aspects. In the context of globalization where ESG issues are a primary focus for investors, Indonesia is strategically positioned to ensure that its nickel industry grows not only rapidly but also responsibly and transparently.

Environmental issues such as coral reef damage and water pollution affecting the livelihoods of fishermen highlight the importance of sustainable mining practices. The documented story of the Bajau community in Southeast Sulawesi by the BBC, threatened by nickel waste, affirms that industrial development must align with the preservation of nature and the livelihoods of local communities.

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