Indonesia: Nickel mining industry poses threats towards Morowali's biodiversity and future economic potential from forest area, AEER says
"Green Economy on the Brink: Multisector Valuation of Morowali Forest as a Basis for Spatial Utilization Policy Amendment" 2025
This study aims to identify and measure the economic value of forests, including biodiversity and ecosystems, to recognize the threats of nickel mining activity in Morowali District, Central Sulawesi. Central Sulawesi is one of the global nickel reserve hubs, a crucial material in electric vehicle battery production. On the other hand, Sulawesi is also known worldwide for its biodiversity. As the pillar of Gross Regional Domestic Product (GRDP) in Central Sulawesi, Morowali District faces a major challenge from nickel mining expansion needed to supply the raw materials to the nickel industry, such as Morowali Industrial Park (IMIP) and Indonesia Huabao Industrial Park (IHIP).
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- Threats of the Nickel Mining Industry to Forest Ecosystem
Analysis of 70 nickel mining business licenses in Morowali shows that the total forest cover at risk of damage by nickel mining is up to 133,256.84 hectares. [...]
Nickel mining concentration in Morowali forest ecosystems brings serious ecological consequences. The widespread loss of primary and secondary forests will destroy the natural habitats for endemic Sulawesi species, such as the maleo bird, the anoa, and the tarsier. Landscape fragmentation caused by mining also obstructs wildlife movement, disrupts the ecological chain, and reduces the forest's capacity to provide environmental services, such as carbon storage, oxygen production, and water regulation. [...]
Without proper mitigation, these losses may lead to local ecosystem degradation, increased risk of ecological disasters, extinction of endemic species, and reduced quality of life for local communities. [...]
B. Recommendation
- Moratorium on Mining Licenses in Primary Forests and High Biodiversity Areas...
- Evaluation and Review of Nickel Mining Licenses...
- Spatial Plan Amendment based on Ecology and Ecosystem Value...
- Reinforcement of Environmental Economic Instruments and Ecological Compensation...
- Ecosystem Value Integration within Regional Government Budget and Planning...
- Formulation of High Conservation Value Policy...
- Improvement to Institutional Governance and Transparency to Mitigate Environmental Risks...