Governance for Sustainable Development for Nickel Project in Indonesia

https://doi.org/10.22146/jkap.87023

Muhammad Imam Akbar Hairi(1*), Diki Zukriadi(2), Lingga Angling Wulung(3), Nur Elfi Husda(4)

(1) Universitas Putera Batam
(2) Universitas Putera Batam
(3) Universitas Putera Batam
(4) Universitas Putera Batam
(*) Corresponding Author

Abstract


The paper investigates the governance and administrative process in the nickel project in Indonesia and offers suggestions to apply governance for sustainable development concept for creating an eco-mobility industry in Indonesia. This paper is a case study using qualitative methodology and governance for sustainable development theoretical framework. In applying qualitative methodology, this paper is supported by previous research publications, local press publications, and interviews. The governance for sustainable development is used as a strategic guideline in mining project to develop Indonesia’s eco-mobility industry further. This paper has three findings. First, the nickel project in Indonesia is part of bilateral cooperation between Indonesia with the National Strategic Program and China with the Belt and Road Initiative program. Thus, the concept of governance is not only applied in domestic policy but also bilateral cooperation. Second, non-technical issues have been identified during the governance and administrative process of nickel project in Indonesia. The governance concept must be applied to resolve the project’s non-technical problems and make it sustainable. Third, all the governance stakeholders in the nickel project must adopt a sustainable governance development framework. Indonesia should avoid further setback and refrain from the previous oil-booming phenomenon in the 1970s. The governance sustainable development concept requires all the stakeholders in the mining project to cooperate inclusively. It comprises extraction, production, recycling-waste management, e-vehicle industry, social acceptance, and rehabilitating the environment (land, air, water, and the living beings) affected by mining activities. This paper highlights Indonesia’s experience in creating an eco-mobility industry, using the nickel project as the key driver under investigation.


Keywords


nickel project; governance; sustainable development; eco-mobility industry; Indonesia

Full Text:

PDF


References

Aggarwal, N. (2019), “Foreign investors flock to Indonesia”, Business Times, 29 August, available at: https://www.businesstimes.com.sg/hub/indonesia-74th-independence-day/foreign-investorsflock-to-indonesia

Arena, M., Cheli, F., Zaninelli, D., Capasso, A., Lamedica, R. and Piccolo. (2013), “Smart mobility for sustainability”, AEIT Annual Conference 2013: Innovation and Scientific and Technical Culture for Development.

Ascher, W. (1998), “From Oil to Timber: The Political Economy of Off-Budget Development Financing in Indonesia”, Indonesia, No. 65 (Apr., 1998), pp. 37-61

Bekker, C. M. (2015), “Project Governance – The Definition and Leadership Dilemma”, Procedia - Social and Behavioral Sciences, vol. 194, pp. 33 – 43

Beritasatu (2019), “Keselamatan Kerja Terancam, Buruh Tuntut Tambang Nikel Morowali”, (The worker’s safety is abandoned, the worker protests the Nickel Company in Morowali), 3 December, available at: https://www.beritasatu.com/nasional/588667/keselamatan-kerja-terancam-buruh-tuntut-tambang-nikel-morowal.i

Bisnis (2021), “Kontrol 30 Persen Nikel Dunia, Jokowi Ingin Fokus Bangun Industri Hilir”, (being in control 30 per cent of nickel in the world, Jokowi wants to focus on building component industry), 10 January, available at: https://ekonomi.bisnis.com/read/20210110/257/1340981/kontrol-30-persen-nikel-dunia-jokowi-ingin-fokus-bangun-industri-hilir .

Bisnis (2021), “Menteri Bahlil: Konstruksi Pabrik Baterai Sel IBC dan Konsorsium LG Dimulai Juli 2021”, (Bahlil (Minister): The construction of Battery Factory and LG Consortium starts on July 2021), 24 June, available at: https://ekonomi.bisnis.com/read/20210624/44/1409452/menteri-bahlil-konstruksi-pabrik-baterai-sel-ibc-dan-konsorsium-lg-dimulai-juli-2021.

Camba, A., Tritto, A. and Silaban, M. (2020), “From the postwar era to intensified Chinese intervention: Variegated extractive regimes in the Philippines and Indonesia”, The Extractive Industries and Society, Vol. 7, pp. 1054–1065.

Camba, A. (2018), “The Philippines Chinese Investment Boom: More Politics than Geopolitics”, New Mandala, 30 January, available at: https://www.newmandala.org/dutertephilippines-chinese-investment-boom-politics-geopolitics/.

Chinadiaologe (2019), “Nickel Mining Resisted in Indonesia”, 12 December, available at: https://chinadialogue.net/en/business/11727-nickel-mining-resisted-in-indonesia-2/.

CNBCIndonesia (2020), “Smelter Nikel China di Sulawesi Dibakar Massa, Ini Pemicunya”, (Chinese smelter in Sulawesi burned by local masses), 16 December, available at: https://www.cnbcindonesia.com/news/20201216093416-4-209412/smelter-nikel-china-di-sulawesi-dibakar-massa-ini-pemicunya.

CNNIndonesia (2020), “Dua Kelompok Massa Bentrok di Area Pabrik China di Konawe”, (two big masses clashes inside the Chinese factory area in Konawe), 29 January, available at: https://www.cnnindonesia.com/nasional/20200129215002-20-469987/dua-kelompok-massa-bentrok-di-area-pabrik-china-di-konawe.

CNNIndonesia (2023), “Melihat Gurita 15.906 Proyek China di Indonesia”, (Understanding China Grip on 15.906 Project in Indonesia), 5 April, available at: https://www.cnnindonesia.com/ekonomi/20230405094417-92-933757/melihat-gurita-15906-proyek-china-di-indonesia/2

Detiknews (2018), “Perusahaan Nikel ini Sumbangkan 3 Truk Logistik ke Posko ACT Palu”, (The nickel company donates 3 trucks full of logistic to ACT post in Palu), 7 October, available at: https://news.detik.com/berita/d-4246265/perusahaan-nikel-ini-sumbangkan-3-truk-logistik-ke-posko-act-palu.

Detiknews (2020), “Sempat Menolak, Gubernur Sultra Kini Terima 500 TKA China Masuk Wilayahnya”, (at first disapprove, now Governor of Southeast Sulawesi is receiving 500 Chinese worker enter his jurisdictions), 16 June, available at: https://news.detik.com/berita/d-5055193/sempat-menolak-gubernur-sultra-kini-terima-500-tka-china-masuk-wilayahnya?_ga=2.183135662.942515678.1626046830-1181743318.1625470578.

Detiknews (2021), “Pemerintah Targetkan Tambahan 4 Smelter di 2021, 2 Telah Rampung”, (the government targets more 4 smelter in 2021, 2 has completed), 8 June, available at: https://finance.detik.com/energi/d-5597838/pemerintah-targetkan-tambahan-4-smelter-di-2021-2-telah-rampung.

Duniatambang (2021), “IMIP dan Ceria: Pemain Nasional Ambisi Global Dalam Industri Hilir Nikel”, (IMIP and delightful: the role national actor in global ambition for Nickel Industry), 29 April, available at: https://duniatambang.co.id/Berita/read/1522/IMIP-dan-Ceria-Pemain-Nasional-Ambisi-Global-dalam-Industri-Hilir-Nikel.

Farooki, M. (2018), “China’s Mineral Sector and the Belt & Road Initiative”, Strategic Dialogue on Sustainable Raw Materials for Europe (STRADE) No. 2, pp.1-11,

Glassburner, B. (1976), “In the Wake of General Ibnu: Crisis in the Indonesian Oil Industry”, Asian Survey, Vol. 16, No. 12 (Dec., 1976), pp. 1099-1112

Hairi, Akbar (2020), “Governance and administrative process of the Light Rail Train project in Palembang, Indonesia”, Public Administration and Policy, Vol. 23 No. 3, pp. 299-313

Hickson, R and Owen, T. (2015), Project Management for Mining, Society for Mining, Metallurgy & Exploration (SME), Colorado.

Hodge, R. (2011), ‘Mining and Sustainability’, in P. Darling (ed.), SME Mining Engineering Handbook, 3rd edition, 1665–88. Englewood, CO: Society for Mining Metallurgy and Exploration Inc.

Hudson, T., Fox, F. and Plumlee, G. (1999), Metal Mining and the Environment, American Geological Institute, Virginia.

IEA (2021), The Role of Critical World Energy Outlook Special Report Minerals in Clean Energy Transitions, IEA Publications.

Investor (2021), “Indonesia Morowali Industrial Park Sumbang 500 Ton Oksigen untuk Pasien Covid-19”, (Indonesia Morowali Industrial Park donates 500 ton oxygen for Covid-19 patient), 6 July, available at: https://investor.id/lifestyle/indonesia-morowali-industrial-park-sumbang-500-ton-oksigen-untuk-pasien-covid19 .

Inews (2023), “RI-China Sepakati Investasi Senilai Rp 197,9 Triliun untuk sejumlah PSN”, (RI-China agree on investment worth IDR 197.9 Trillion for a number of PSN), 17 October, available at: https://www.inews.id/finance/bisnis/ri-china-sepakati-investasi-senilai-rp1979-triliun-untuk-sejumlah-psn

Khorami, M., Edraki, M., Corder, G. and Golev, A. (2019), “Re-Thinking Mining Waste Through an Integrative Approach Led by Circular Economy Aspirations”, Centre for Mined Land Rehabilitation, Sustainable Minerals Institute, The University of Queensland, St Lucia.

Kompasiana (2019), “Banyaknya Pekerja Asal China di Morowali”, (Too much Chinese worker in Morowali), 5 August, available at: https://www.kompasiana.com/rivalcianto9041/5d473fb40d82300fb45ddb24/banyaknya-pekerja-asal-china-di-morowali?page=all.

Kompas (2021), “Akhir Juli 2021, LG Bangun Pabrik Baterai Mobil Listrik di Indonesia”, (on the end of July 2021, LG will build battery factory for electric car in Indonesia), 24 June, available at: https://money.kompas.com/read/2021/06/24/163550726/akhir-juli-2021-lg-bangun-pabrik-baterai-mobil-listrik-di-indonesia.

Kontan (2020), “Morowali Industrial (IMIP) Merajai Produksi Nikel Olahan di Indonesia”, (Morowali Industrial Area (IMIP) is leading production of nickel processing in Indonesia), 20 October, available at: https://industri.kontan.co.id/news/morowali-industrial-imip-merajai-produksi-nikel-olahan-di-indonesia.

KLHK (2020), “Kementerian Lingkungan Hidup dan Kehutanan (KLHK) Dorong Industri Tambang Kelola Limbah B3 Menjadi Sesuatu Yang Bermanfaat”, (The ministry of ecosystem and forestry push the mining industry to manage B3 waste into something useful), 7 June, available at: http://ppid.menlhk.go.id/siaran_pers/browse/2507.

Meadowcroft, J. (2011), Sustainable Development, SAGE publications, California.

Molyneux, J. (2013), “Protecting project value erosion from non-technical causes”, Presented at 2nd Annual Global Sustainable Mining Summit, Toronto, Canada, May 28.

Nicolaï, I. and Le Boennec, R. (2018), “Smart Mobility Providing Smart Cities”, in P. da Costa, D. Attias (eds.), Towards a Sustainable Economy, Sustainability and Innovation, Springer International Publishing AG.

Parker, J. (2013), “Long-term critical thinking”, Mining Weekly 10(14):1.

Roskill (2021), “Nickel, Cobalt: GEM moves to boost stake in Indonesian HPAL project”, 8 January, available at: https://roskill.com/news/nickel-cobalt-gem-moves-to-boost-stake-in-indonesian-hpal-project/.

Statista (2021), “Contribution to GDP Indonesia 2020”, 16 June, available at: https://www.statista.com/statistics/1019099/indonesia-gdp-contribution-by-industry/ .

Tritto, A. (2018), “The Belt and Road Initiative: a view from Indonesia”, Presentation for the workshop "The Belt and Road: From Vision to Reality” held at the Institute of Emerging Market Studies, The Hong Kong University of Science and Technology, 16 May, Hong Kong

UNDP (2021), Sustainable development goals, available at: https://www.undp.org/sustainable-development-goals .

Yin, R.K. (2013), Case Study Research: Design and Methods, Sage, Thousand Oaks, CA.



DOI: https://doi.org/10.22146/jkap.87023

Article Metrics

Abstract views : 2473 | views : 1784

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Copyright (c) 2023 JKAP (Jurnal Kebijakan dan Administrasi Publik)

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.