Green Transition, Dirty Foundations: The Hidden Contradictions of Indonesia’s Nickel Empire

Abstract

Indonesia’s ambition to become a central player in the global electric vehicle supply chain has elevated nickel downstreaming into a cornerstone of national industrial policy. Presented as a pathway toward economic transformation and participation in the global green transition, this strategy also raises questions about environmental sustainability, labor conditions, and the distribution of economic benefits. This study proposes to critically examine the contradictions between Indonesia’s green industrial ambitions and the social and ecological consequences of nickel extraction and processing. Drawing on environmental justice, political ecology, and global value chain theory, the research would employ a qualitative case-study approach focusing on selected nickel-producing regions in Sulawesi and, where analytically relevant, Maluku. Data collection would combine policy-document analysis, corporate sustainability disclosures, environmental assessments, and semi-structured interviews with workers, community representatives, policymakers, and civil society organizations. The analysis would investigate how the costs and benefits of nickel industrialization are distributed across communities, firms, and the state, while examining Indonesia’s position within international competition over critical minerals. Particular attention would be given to tensions between national economic sovereignty, foreign investment, and local environmental security. The study aims to advance debates on whether resource-based industrialization can deliver an equitable green transition in emerging economies. Its anticipated contribution is a context-sensitive framework for evaluating industrial development beyond export growth and investment indicators, with implications for environmental governance and responsible mineral supply chains.

Keywords

• nickel downstreaming
• green transition
• environmental justice
• political ecology
• Indonesia