Indonesia allowing nickel industry abuses to go unchecked: Report
This aerial photo taken on April 18, 2025 shows smoke rising at Weda Bay Industrial Park (WBIP), a major nickel processing and smelting hub, in Lelilef Sawai, Central Halmahera, North Maluku. - AFP
JAKARTA: The Indonesian government is allowing environmental damage including deforestation and violations against Indigenous people to go unchecked around a multi-billion dollar industrial park on a once-pristine eastern island, a report said Thursday (June 5).
Indonesia is both the world's largest nickel producer, and home to the biggest-known reserves, and a 2020 export ban has spurred a domestic industrial boom.
Operations have grown around Weda Bay, the world's largest nickel mine by production, on Halmahera island as Indonesia exploits the metal reserves used in everything from electric vehicle batteries to stainless steel.
Climate Rights International (CRI) said companies had caused a spike in air and water pollution and deforestation around the industrial park, accusing the government of ignoring their conduct.
"The Indonesian government is giving a green light to corporate practices that prioritise profits over the rights of local communities and the environment," Krista Shennum, researcher at Climate Rights International, told AFP.
"The Indonesian government should immediately hold companies accountable. This could include civil penalties, criminal prosecutions, or rescinding permits."
Much of the park's nickel is sourced by Weda Bay Nickel (WBN), a joint venture of Indonesian mining firm Antam and Singapore-based Strand Minerals, with shares divided between French mining giant Eramet and Chinese steel major Tsingshan.
An AFP report last week detailed how the home of the nomadic Hongana Manyawa tribe was being eaten away by the world's largest nickel mine, with members issuing a call for nickel companies to leave their tribal lands alone.
Locals have reported a rise in air pollution from nickel processing smelters and rivers polluted by nickel tailings in soil brought down by heavy rain.
Water tests by Indonesian NGOs AEER, JATAM, and Nexus3 Foundation in 2023 and 2024 "revealed dangerously high levels of nickel and hexavalent chromium, among other pollutants", the report said.
"(Companies) are failing local communities by not making information about the safety of important drinking water sources publicly available and accessible," said Shennum.
Both WBN and Eramet told AFP last week they work to minimise impacts on the environment, including conducting water tests.
CRI also said Indonesian and foreign companies in coordination with police and military personnel had "engaged in land grabbing, coercion and intimidation" of Indigenous peoples and other communities.
Local activists and students opposing the industrial park have "faced criminalisation, harassment and smear campaigns", the report said.
Weda Bay Nickel and the Indonesian government did not immediately respond to a request for comment.
But Indonesia's energy ministry told AFP last week it was committed to "protecting the rights of Indigenous peoples and ensuring that mining activities do not damage their lives and environment". - AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
2 hours ago
- New Straits Times
'Clash of the Titans:' allies fear fallout in Trump-Musk split
HE is almost certainly off the guest list for White House galas, but Elon Musk's astonishing spat with Donald Trump could inflict damage for both men that goes far beyond catchy headlines and an incinerated friendship. On one side, there's the US president – a man who has already shown unprecedented appetite for using the levers of power to go after opponents. On the other: the world's richest man, with a business empire entwined deep into the heart of the US economy and space industry. "Get your popcorn," Chaim Siegel, an analyst at financial services company Elazar Advisors told AFP. "I've never seen two people this big go at it this nasty in all my time in the business. Can't be good for either side." Trump allies worry that the messy breakup could have ramifications for his legacy and Republicans' election prospects, as well as damaging the administration's ties with Silicon Valley donors. Musk is also in jeopardy. Trump has threatened to scrap the tech mogul's lucrative subsidies and federal contracts, potentially devastating Tesla and risking some $22 billion of SpaceX's government income – even if it remains unclear how the US government itself would manage the fallout. The catalyst for the split was Trump's sprawling domestic policy bill, a package that Musk has complained in increasingly apocalyptic terms will swell the budget deficit, undermining the president's agenda. But the issue quickly has become extraordinarily bitter. Musk called Thursday for Trump's impeachment, implying that the Republican was linked to the crimes of financier Jeffrey Epstein, who died by suicide after being charged with sex-trafficking to elite, international clients. The dust-up has rocked to the core the fragile coalition between the populists in Trump's "MAGA" movement and the Musk-friendly "tech bros" whose podcasts and cash helped secure the Republican's second term. Influential figures on the populist side hit back with calls for investigations into South African-born Musk's immigration status, security clearance and alleged drug use. Meanwhile in Congress, Republicans are calling for a ceasefire, worried that the world's richest man will use his deep pockets to exact revenge in the 2026 midterm congressional election. Trump and Musk were never obvious allies, but the flamboyant entrepreneur turned into the Republican's surprise wingman – and mega-donor – during the 2024 election. Musk ended up spending US$290 million to help the campaigns of Trump and other Republicans. He was then rewarded with overseeing the so-called Department of Government Efficiency, which embarked on ruthless and, critics say, ideologically driven slashing of the State Department and other bodies. "Without me, Trump would have lost the election," Musk posted on his social platform X at the height of a dust-up that US media labelled the "Clash of the Titans." As president, Trump is arguably the most powerful person in the world. But Musk's megaphone – X – is much bigger than Trump's Truth Social and he is a prolific trash talker, instantly reaching many millions of people. Musk's portfolio of almost 100 contracts with 17 government agencies also gives him enormous power over the federal bureaucracy, including the US space programme. Trump, on the other hand, has ultimate say over those contracts. If Trump heeds his supporters' calls for investigations he could tie Musk down for years, revoking his security clearances and issuing executive orders to gum up his business. Trump, 78, may need to walk a delicate line given the risk that Musk will lobby Congress to scuttle his budget plans. Republican lawmakers – most of whom are fighting elections next year – have welcomed Musk with open arms, nodding approvingly at his calls for federal cuts and grateful for his campaign cash. But when it comes to picking sides, most Republicans who have spoken out on the spat are sticking with Trump. The president has a long history of forcing wavering lawmakers to step back into line. "Every tweet that goes out, people are more in lockstep behind President Trump, and (Musk's) losing favour," Congressman Kevin Hern told political website NOTUS. Musk, who dreams of colonising Mars, responded with a longer view of the situation. "Some food for thought as they ponder this question: Trump has 3.5 years left as President," Musk posted, "but I will be around for 40+ years."
The Star
2 hours ago
- The Star
Stablecoin firm Circle scales record high after blockbuster NYSE listing
Jeremy Allaire, CEO and co-founder of Circle Internet Group, the issuer of one of the world's biggest stablecoins, reacts to the price of first trade, on the day of the company's IPO, at the New York Stock Exchange (NYSE), in New York City, U.S., June 5, 2025. REUTERS/Brendan McDermid/File Photo (Reuters) -Stablecoin issuer Circle Internet's shares climbed 41% to hit a record high on Friday, extending a stellar run after a blowout market debut on the New York Stock Exchange a day earlier. The New York-based company's stock touched as much as $117.45, more than triple its offer price of $31 and valuing the company at $30.5 billion on a fully diluted basis. The blockbuster listing also reinforced expectations that the IPO market was regaining its momentum after being stifled by tariff-driven volatility. "This is big enough that it extends beyond crypto," said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs. Wall Street executives also struck an optimistic tone on Thursday at an industry conference, emphasizing that markets were ready for the right companies. NYSE President Lynn Martin said Circle's IPO was a bellwether for the IPO market this year and not just for crypto listings. Investors are also realizing that the uncertain environment is going to be relatively persistent and focusing on putting their dollars at work, Nasdaq CEO Adena Friedman said. "This is the latest sign of building momentum in the IPO market. We'll likely continue to see moderate activity over the next month, but there is still some tariff uncertainty on the horizon, which is why we're expecting more of a full IPO rebound in the fall," Kennedy said. Digital banking startup Chime is poised to go public in New York next week. Sixth Street-backed cancer diagnostic firm Caris Life Sciences, private equity-backed debt buyer Jefferson Capital and Florida-based Slide Insurance have also joined the IPO pipeline in recent weeks. (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Sriraj Kalluvila)
New Straits Times
3 hours ago
- New Straits Times
US-China trade talks to resume in seven days: White House
WASHINGTON: Trade negotiations between US and Chinese officials are expected to resume within seven days, following a phone call between President Donald Trump and President Xi Jinping. The discussions will place particular emphasis on rare earth minerals, White House Trade Adviser Peter Navarro confirmed on Friday. "We expect that a meeting will take place within seven days," Navarro told reporters at the White House, commenting on the timeline of the next round of trade talks. Navarro stated that Trump has been clear that "the rare earth issue will be key to that negotiation", as reported by Sputnik/RIA Novosti. The US delegation will include Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent, and Secretary of Commerce Howard Lutnick, according to Navarro. The advisor also mentioned that Thursday's call between Trump and Xi lasted approximately 90 minutes, during which both leaders demonstrated "a very clear understanding" of the expected outcomes of the upcoming discussions. Trump later shared on Truth Social that he had discussed "some of the intricacies" of the US-China trade deal with President Xi. He also announced that he had accepted Xi's invitation to visit China and extended a reciprocal invitation. Following high-level trade and economic talks in Geneva earlier in May, Washington and Beijing agreed to lower reciprocal tariffs by 115 percentage points each for 90 days. The US has reduced tariffs on Chinese goods from 145 per cent to 30 per cent, while China has cut tariffs on American imports from 125 per cent to 10 per cent. Later that month, Trump accused China of "totally violating" the Geneva agreement and remarked that "it is extremely hard" to reach a deal with Beijing.–BERNAMA
