ESG Nikel Indonesia: Narasi Hijau, Praktik Abu-abu

30 June 2025

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Al Ayubi

ESG Nickel Indonesia: Green Narratives, Gray Practices

Amidst the global energy transition agenda, Indonesia is in the spotlight as one of the world's major nickel producers. With the narrative of contributing to decarbonization and encouraging mineral downstreaming, the nickel sector is positioned as the backbone of the national green economy. However, behind this rhetoric of sustainability, various findings show that industry practices on the ground are still far from credible Environmental, Social, and Governance (ESG) principles.

This Briefing Note critically examines how ESG is often used as a symbolic label without structural improvements in industrial governance. Based on various studies and field reports, including the results of the Indonesian National Conference on Critical Minerals (KNMKI) in Palu, our findings highlight the risks of deforestation, social conflicts, dependence on coal-fired power plants, and low data transparency and accountability of nickel industry players.

Furthermore, this document examines how ESG practices in Indonesia do not yet meet international standards such as the EU Battery Passport and Corporate Sustainability Due Diligence Directive, which can have a direct impact on the competitiveness of national nickel in the global market.

This Briefing Note is intended to enrich policy discussions with a more critical and data-driven perspective, in an effort to encourage more equitable, transparent and responsible governance of critical minerals.

Publication details

Published: 30 June 2025

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