Stakeholder views on the uptake of sustainable and responsible nickel mining and processing supply chains for electric vehicles in Indonesia

Abstract

This thesis explores the evolution and contemporary challenges of Indonesia’s nickel industry within the context of the electric vehicle (EV) supply chain. It critically examines the sustainability and ethical considerations as Indonesia positions itself as a key player in the global transition to clean energy. The study provides a comprehensive analysis of Indonesia’s strategic moves to enhance the value derived from its extensive nickel reserves, underscored by the implementation of policies such as the raw export ban aimed at fostering local processing industries. Central to this examination is the dual role of nickel as both a critical and contentious resource, reflecting on its classification as a critical mineral by multiple countries due to its indispensability in EV battery production and the substantial environmental and social challenges associated with its extraction and processing. Employing a policy mobility framework, this thesis navigates the trans-local dynamics of policy making in Indonesia, juxtaposing these with global economy wide pursuits of transportation decarbonization via the EV industry. Through a mixed-methods approach, combining literature review, stakeholder interviews, and field observations, the research unveils the multifaceted perspectives of various stakeholders including industrial entities, government bodies, and civil society organizations. The findings highlight the significant influence of international investment, mainly Chinese investment in shaping Indonesia’s nickel processing capabilities, while also noting the ethical dilemmas and environmental hazards posed by the industry’s expansion. Indonesia’s strategy to escalate value addition locally is critically assessed, revealing both progress and persistent ethical and environmental challenges. Strategies are proposed to leverage the myriad of resources, influence and authority of actors along the EV supply chain to spur the growth of sustainable and responsible supply of Indonesian nickel. The thesis contributes to the discourse on sustainable mineral supply chains by proposing policy recommendations aimed at reconciling economic ambitions with environmental and social imperatives. These recommendations advocate for enhanced governance structures, transparent supply chains, and international collaboration to achieve ethical sourcing practices. The research underscores the need for a balanced approach that not only caters to the economic aspirations of resource-rich nations but also adheres to global sustainability standards.