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Home Steel News Indonesia's nickel industry faces negative environmental impact amid global dominance goals
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Indonesia's nickel industry faces negative environmental impact amid global dominance goals

27 Jun 2024 16:58 reported by Stanley Wang

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Indonesia's nickel industry has rapidly transformed in recent years, emerging as a crucial global supplier essential for electric vehicle batteries. This shift, however, comes with significant environmental concerns, earning Indonesia the reputation of producing "dirty" nickel.

President Joko Widodo's ban on raw nickel ore exports spurred a boom, attracting billions in investments from Chinese firms eager to secure nickel supplies for the electric vehicle revolution. While this has bolstered Indonesia's exports and foreign direct investment, critics decry the environmental toll, citing deforestation and pollution from coal-fired power used in nickel processing.

Environmental groups like Satya Bumi urge stricter regulations and sustainable practices. Despite these challenges, Indonesia remains poised to dominate global nickel production, with expectations to increase its share from 57% to 69% by 2030.

In response, Jakarta plans a "decarbonization road map" by 2025, aiming to balance economic gains with environmental stewardship. Transitioning from coal to renewable energy sources remains a long-term goal amid infrastructure challenges in remote mining areas.

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