"BTIIG Industry and Threats to High Conservation Value Areas in Morowali: A Consistency Test of IBSAP, FOLU Net Sink 2030, and the Kunming-Montreal Global Biodiversity Framework" 6 August 2025

Executive Summary

PT Baoshuo Taman Industry Investment Group (BTIIG) plans to build and develop industrial parks in West Bungku, Morowali which covers around 7,376 hectares of area. The research shows that 3,945 hectares, or equivalent to 53.47 percent of the total area, are the High Conservation Value (HCV) areas. It means that more than half of the planned industrial park have ecological, social, and cultural functions, essential for sustainability. [...]

The findings highlight the huge risks of nickel industry development in the area towards the unique ecosystems, endemic and endangered biodiversity, and socio-cultural sustainability. Due to their irreplaceable nature, specifically the ultrabasic and karst ecosystems, the precautionary principle should be applied. Thus, every HCV areas, which covers 3,945 hectares of land should be regarded as a no-go area until credible scientific evidence refutes it.[...]

Similar to other nickel industrial parks, the energy resources in BTIIG industrial park also come from coal energy, using 3x250 MW Captive PLTU (Coal-Fired Power Plant). Captive PLTU in BTIIG industrial park belongs to Beishi Indonesia Investment.

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PT Baoshuo Taman Industry Investment Group (BTIIG) is part of a large-scale project managed by Zhenshi Holding Group, a leading Chinese conglomerate. According to BTIIG’s ownership chart, Zhenshi Holding Group holds the majority control through its subsidiary, PT Zhenshi Indonesia by owning 51% of the shares. With this majority share, Zhenshi Holding Group has full control over BTIIG’s strategic policy direction. BTIIG’s minority shares are owned by other entities, such as PT Kejayaan Emas Persada (27.45%), PT Himalaya Global Investment (11.27%), and Beijing Shengyue Oriental Investment Co., Ltd. (10.29%).

PT Shuoshi Indonesia Investment is also under Zhenshi Holding Group through Zhenshi Group Hongkong Huarong Investment Company Limited which owns 75% of the shares and Zhenshi Group Hongkong Huayao Investment Company Limited which owns 10% of the shares. This majority ownership strengthens Zhenshi’s control over PT SII’s smelter operation. Apart from Zhenshi Holding Group, 15% of PT SII’s shares are owned by Huaying (HK) Investment Limited.

Zhenshi Holding Group strengthens its position as the main manager of this industrial park Development by holding the majority shares of BTIIG and SII.

A captive PLTU company in BTIIG, PT Beishi Indonesia Investment, is under Huading Investment Company Limited which holds 75% of the shares. Other entities that own shares in PT BII are Huatian (HK) Investment Limited, with 15% of the shares and Kaishi Investment Company Limited, which owns 10%.

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3.1.1 HCV 1 - Species Diversity

The industrial park of PT BTIIG in West Bungku, Morowali, is located in a natural landscape that reserves the native biodiversity of Sulawesi... In this area, there are still some varieties of species with critical conservation status, either due to their endemicity and endangerment levels, or their vital ecological roles...

One of the most outstanding areas is Sigendo Forest. It is a part of the lowland ecosystem of Sulawesi that grows on limestones, with distinct vegetation that mixes the characteristics of lowland forest and karst forest. According to the locals, this forest has been inhabited for a long time by key animals of Sulawesi, including babirusas (Babyrousa celebensis), anoas (Bubalus depressicornis), and maleo birds (Macrocephalon maleo). The three animals are protected species with highly endangered status according to IUCN...

Threats to biodiversity of Sigendo Forest have become more apparent after the expansion of PT BTIIG started. Some parts of the forest area are planned to be transformed into a tailing disposal site. Once it’s realized, the heavy metal content in soil and groundwater is expected to rise, decreasing the quality of flora and fauna habitat. Not only does this impact locally damage the species, but it will also threaten the existence of Sulawesi’s unique germplasm.

Maleo birds are the most apparent case to showcase the vulnerability of HCV 1 in this area. Maleo is a bird endemic to Sulawesi that can only reproduce in specific ecological conditions by making nests out of a hole on the ground to lay eggs. However, land clearing and haul road construction by PT BTIIG made the locations for the nests more open...

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3.1.3 HCV 3 - Rare or Endangered Ecosystems and Habitat

The high conservation value category of HCV 3 refers to the presence of an ecosystem or habitat classified as rare, endangered, or restricted-range, and losing only some part of it may cause great impact to biodiversity preservation. In the area of BTIIG industrial park development plan and its surroundings, there are two types of ecosystems that obviously qualify for this criteria, namely ultrabasic forest and karst ecosystem with active cave networks. They are not only ecologically unique, but also very vulnerable to any disturbances from extractive industrial activities, especially nickel and limestone mining.

Folili ultrabasic forest is the key instance of a rare ecosystem that still remains in West Bungku landscape. It grows on soil formed from the weathering of ultramafic rock that is rich in heavy metal, poor in nutrients, and toxic for many types of plants. This extreme condition allows only certain species to adapt and survive, such as thick-leaved dwarf trees of the genus Metrosideros, Xanthostemon, and members of Sapotaceae and Burseraceae. In Sulawesi, the ultrabasic forest only covers 0.55% of the island, making its existence extremely rare. By damaging this ecosystem, the natural recovery process would take hundreds of years, given that the vegetative regeneration on ultrabasic soil runs very slowly.

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Threats against the two endangered ecosystems have now become apparent. Limestone minings around the limestone hills are causing visual and structural damages to the karst cliffs. On the other hand, the development plan of PT BTIIG industrial park has been increasingly threatening the Folili ultrabasic forest...

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Conclusion

This study has successfully identified at least 58 plant types (45 trees, 8 bushes and shrubs, and 5 understories) and 64 animal types (5 mammals, 19 reptiles, 5 amphibians, and 5 fishes) in the concession area of PT BTIIG. This diversity indicates that the industrial park is still within the landscape with rich, unique biodiversity that holds high conservation value.

Other than that, there are at least 8 natural plant types that are important for the locals, used as food sources, medications, as well as construction materials. The existence of these plants highlights a tight connection between forest ecosystems and the livelihood of the locals, especially for the indigenous people of Wana.

The high conservation value (HCV) area within PT BTIIG approximately covers 3,945 hectares, mainly consisting of forests with a wide range of cover conditions and types of ecosystems...

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... all of the high conservation values are in serious danger due to the expansion of the industrial park, land clearing for haul road, tailing disposal plan, and limestone mining around the karst hills. Failure to control these threats could jeopardize the survival of key Sulawesi species—such as maleos, anoas, babirusas, and hornbills— and may also lead to the loss of vital resources for local communities, including water, food, and habitable land. Cultural sites such as Vavompogaro Cave and Kumapa Cave are also vulnerable to irreversible damage, which could result in the loss of the irreplaceable historical and spiritual heritage.

3.4 Recommendations

1. For the Central Government

• Thoroughly map all HCVs in Morowali, including the ones within the concession of PT BTIIG, to establish the area as a legitimate preservation area.
• Ensure that the protection of HCVs also secure the rights of the indigenous people, including their assets and access to the sources of water, food, timbers, and cultural sites.
• Provide a strict monitoring mechanism on the management of HCVs in the industrial area to prevent ecosystem damages.
• Integrate the protection of HCVs into the national targets, primarily IBSAP 2025–2045 and FOLU Net Sink 2030 (CO₂e emission reduced by 140 Mt from forestry sector and land uses).
• Involve the local and indigenous communities in planning, constructing, and monitoring the industrial park.

2. For PT Baoshuo Taman Industry Investment Group (BTIIG)

• Involve and respect the local and indigenous communities, especially the Wanas, in planning, constructing, and monitoring the industrial park.
• Set a comprehensive Environmental Management and Monitoring Plan (Rencana Pengelolaan dan Pemantauan Lingkungan / RKL-RPL) that specifically accommodates the existence of HCV 1–6.
• Ensure that the documents for AMDAL and implementation reports of RKL-RPL are publicly accessible for transparency and accountability.
• Refrain from expanding the industrial park, mainly in HCV areas.

3. Communities and Stakeholders

Enhance social control through public participation to make sure the industrial activities are always aligned with the precautionary principle and sustainability.