Reporting by Katerina Barton
Photography by Claire Harbage
Graphics by Connie Hanzhang Jin
Published May 7, 2026
Over the past decade Indonesia has expanded its nickel industry rapidly and now produces more than half the world’s nickel. Most goes to stainless steel; an increasing share is destined for batteries used in electric vehicles and data centers. The government promotes a green‑energy transition centered on nickel processing, but mining remains far from clean and has exacted environmental and social costs.
Indonesia’s refining capacity is largely controlled by foreign firms, mainly Chinese companies, and the U.S. has recently secured access to Indonesian nickel as it seeks to reduce dependence on China. Most mining activity is concentrated on the island of Sulawesi, where once‑small villages have been transformed into mining and processing hubs.
The number of active nickel‑mining licenses in Sulawesi rose from one in 2005 to a peak of 408 in 2022; a small decline in 2023 followed government efforts to better regulate the sector and curb oversupply.
NPR reporters visited six Sulawesi locations to document how nickel mining reshapes land and daily life. In some places mining brought jobs and company benefits; in others it brought pollution, lost livelihoods and resistance that in rare cases led to mine closures.
Labengki: an area still mostly untouched
Labengki Island remains lightly affected. Around 500 people live in the island’s sole village, many Bajau — an Indigenous people historically known as sea nomads — who fish and make livelihoods from the sea. Waters near Labengki are clear and rich in coral and marine life, a contrast to nearby mined areas.
Boenaga: a stark contrast
Boenaga, a Bajau village on the mainland, sits amid nickel mines, deforested hills and exposed red earth. Village officials say mining boosted the local economy: many residents work for mining firms, and companies sometimes pay utilities or monthly stipends. But fishermen report having to travel farther and spend more on fuel to reach fish, and some feel unable to complain because they depend on company benefits.
Local conservationist Habib Nadjar Buduha documents increasing turbidity and sediment in waters between Boenaga and Labengki, observing declines in giant clam populations over the past decade. Sediment from mines makes water murky even miles from the nearest mine, smothering coral and threatening filter feeders like giant clams, which can suffocate or accumulate toxic metals when sediments settle over their gills.
Indonesia Pomalaa Industrial Park (IPIP): new projects and lost land
Construction of the Indonesia Pomalaa Industrial Park in Southeast Sulawesi is being promoted as a future EV‑battery materials hub. The park is backed by investors including Huaxing Nickel Indonesia (a Zhejiang Huayou Cobalt subsidiary) and Rimau New World; a processing plant inside IPIP includes investment from Huayou Indonesia, Vale Indonesia and Ford Motor Co. NPR’s inquiries to several companies received limited comment; Ford said it is committed to respecting human rights and protecting the environment.
Farmers near IPIP say land was cleared without adequate compensation or consultation. One farmer, Arman, found cashew trees cut to build a road; others say they were paid below market value or felt they had no choice because projects were designated nationally important. Some sold land and found new jobs; others lost steady income and now struggle to buy basic food.
Sediment from IPIP construction flows into the ocean, raising concerns about damage to marine ecosystems that local people rely on.
Morowali Industrial Park (IMIP): mining as way of life
Indonesia Morowali Industrial Park, built beginning in 2013, is the country’s largest nickel production complex. The park spans roughly 10,000 acres in Bahodopi, creating an industrial maze with worker housing, markets and services. Coal‑fired power plants supply much of IMIP’s electricity; a constant smog blankets Bahodopi and residents report worsening air quality.
Public health data show sharp increases in respiratory illness. Cases of acute respiratory tract infection reported at the Bahodopi community health center have risen markedly, and the regency’s only hospital recorded 812 respiratory cases in 2020 versus 3,228 in 2025. The hospital’s sole pulmonologist says 70–80% of his respiratory patients come from Bahodopi. Residents report chest pain, shortness of breath and frequent illness attributed by local clinicians to air pollution.
IMIP also has a troubling workplace safety record. A federation of mining and energy unions reports IMIP has the highest number of workplace accidents in Indonesia’s nickel industry, with more than 40 fatalities since 2016. Some workers and union members accuse investors of prioritizing profit over worker safety and welfare.
Many long‑time villagers say they have not shared in the new wealth. Fishing near homes has declined, pushing some to travel farther and earn less. New housing and services cater largely to incoming workers rather than established families.
Morosi: seeking government accountability
In Tani Indah, villagers complain a coal‑fired power plant operated by Chinese‑owned Obsidian Stainless Steel and located in the Virtue Dragon Nickel Industry Park pollutes local land and water. Thousands of shrimp and fish died on some farms, villagers say. Local groups filed a lawsuit against the companies over environmental damage and health violations. Companies have said they operate in compliance with laws; legal battles and calls for central government enforcement continue.
Wawonii: a rare legal victory
Wawonii island illustrates the limits and possibilities of local resistance. In 2017 company Gema Kreasi Perdana began mining near Roko‑Roko village. After years of protests, arrests of villagers, and confrontations, villagers won a legal victory in Indonesia’s Supreme Court in 2024 and the mine closed in 2025. Fish have returned to the river and farmers are back on their land, but locals remain worried about other firms encroaching and the long‑term recovery of ecosystems.
Tradeoffs and unanswered questions
Across Sulawesi, nickel mining has delivered jobs, infrastructure and investments that some residents welcome. It has also driven deforestation, sediment and heavy‑metal pollution, disrupted fisheries and agriculture, worsened air quality, strained public health services and raised safety concerns for workers. Foreign capital and processing capacity shape where value accrues, and disputes over land, compensation and enforcement are common.
Conservationists, residents and some legal advocates argue for stricter regulation, better environmental monitoring, transparent land acquisition and meaningful community consent. Some local actors call for balancing development with marine and terrestrial ecosystem protection; others demand accountability from companies and stronger government oversight.
“A small island like this, you can see the destruction they brought by just one mining company,” a Wawonii villager said after the mine closure. “What will happen in the future? Where will our grandchildren go if this island is destroyed?”
The nickel boom has reshaped Sulawesi’s economy and landscape. Whether Indonesia can meet its ambitions as a green‑energy supplier while safeguarding communities and the environment remains an open and urgent challenge.