Despite a Decrease in Poverty, North Maluku's Nickel Centers Face Numerous Challenges

According to data from the Central Statistics Agency (BPS), poverty rates have decreased in several nickel-producing areas of North Maluku, namely East Halmahera and Central Halmahera regencies.

Between 2014 and 2023, the poverty rate in East Halmahera decreased from 15.94% to 12.47%. During the same period, poverty in Central Halmahera fell from 16.88% to 11.44%.

Despite the reduction in poverty, nickel-producing areas in North Maluku face various challenges due to the nickel industry.

This is evident in research conducted by Aksi Ekologi Emansipasi Rakyat (AEER), a non-profit organization in the environmental and energy sector.

In 2023, AEER conducted research in several villages in Central Halmahera Regency, now part of the concession area of PT Indonesia Weda Bay Industrial Park (IWIP).

AEER researcher Andi Rahmana stated that after IWIP entered the region, agricultural land, mangrove forests, and residential areas have changed.

"Areas like the Ake Sake River have been diverted for the construction of a coal-fired power plant (PLTU). Several rivers have even been filled in and no longer flow into Weda Bay, such as the Karkar, Woebem, and Gwondi Rivers," said Andi, as quoted by *Media Indonesia* (31/7/2023).

Andi also found that the emergence of the nickel industry in the region has triggered land disputes and shifts in people's livelihoods.

"Farmers have lost their farms, and fishermen who used to only need to sail 1 kilometer from the coast now have to sail up to 20 to 30 kilometers because the IWIP operational area is dangerous. There are barges transporting coal and logistics, and the fish population on the coast has decreased," said Andi.

According to Katadata Green Product Manager Jeany Hartriani, downstream mining often presents challenges such as the risk of deforestation, social conflict, and environmental damage.

There are also challenges in waste management, the involvement of local communities, the availability of skilled local labor, and the emergence of corruption and mining mafias.

To address these challenges, Jeany presented three recommendations regarding downstream mining programs, based on the results of a series of discussions by Katadata Green with community organizations and research institutions.

"In the area of governance, a detailed roadmap with measurable targets is needed, the application of ESG principles to reduce the negative impacts of downstream activities, and the certainty of technology and knowledge transfer," said Jeany at the Katadata Forum discussion at Hotel Aone, Central Jakarta, Thursday (25/1/2024).

"In the area of investment policy, a review of incentives such as tax holidays and royalty discounts is needed to prevent over-investment in smelters, and a focus on policies prohibiting the export of raw materials," she said.

"Finally, in terms of choosing the focus of downstream activities, the recommendation includes creating a prioritization scale based on industry and commodity readiness, as well as developing a waste battery recycling industry," said Jeany.