Nickel Downstreaming and the Question of “For Whom?”: Unpacking the Ecological and Social Burdens of Indonesia’s Energy Transition in North Maluku

Abstract

Indonesia’s nickel downstreaming strategy has been promoted as a cornerstone of the country’s green industrialization and electric vehicle transition. Yet the expansion of nickel mining and processing in North Maluku raises a fundamental question: who benefits from the economic value generated by the global battery economy, and who bears its environmental and social costs? Focusing on Obi Island and Kawasi, this article examines the unequal distribution of ecological risks associated with nickel extraction, processing, and industrial development. Particular attention is given to water and soil pollution, landscape transformation, displacement, relocation, and the disruption of local livelihoods. The article further investigates how the language of critical minerals and energy transition can obscure the experiences of communities living at the extraction frontier. By placing Kawasi within a broader political-ecological framework, the study explores how value is accumulated across national and global supply chains while environmental burdens remain concentrated in local communities. It argues that an energy transition cannot be considered just merely because its end products are associated with low-carbon technologies. Rather, justice requires attention to the conditions under which minerals are extracted, the distribution of benefits and risks, and the rights of affected communities to participate meaningfully in decisions concerning their territories.