Essential for the energy transition – but at what cost?
Indonesia has one of the largest nickel reserves in the world and accounts for almost half of global nickel production.
Since 2020, Indonesia has banned the export of raw nickel in order to boost local refining and battery production. But does this policy actually benefit local communities?
Morowali on Sulawesi is the epicentre of nickel production in Indonesia. Industrial estates have expanded rapidly, but basic infrastructure – waste management, sewerage, housing – lags far behind.
Workers face unsafe and unhealthy conditions and low wages, forcing them into excessive overtime, as is also evident from the risk assessment carried out by Profundo on behalf of CNV Internationaal.
Whilst the rapid growth of the nickel industry is certainly stimulating economic growth, at the same time gender inequality is actually increasing. New social and environmental vulnerabilities are emerging.
The gender analysis carried out by the SRI Institute on behalf of CNV Internationaal reveals how women and marginalised groups in this sector face a wide range of barriers.
By highlighting these inequalities, the research provides insights for developing measures that are inclusive and fair, and that address diverse needs.
“ It looks like a disaster zone. Workers live in chicken-coop-like accommodation. Wages are so low that working overtime is the only way to survive. ”
Yunika Kurniyatiningsh, local coordinator for CNV Internationaal
European and global companies that source nickel have the influence to demand fair wages, safe working conditions and gender equality. CNV International’s Fair Impact Programme provides tools for risk assessment, stakeholder engagement and sustainable supply chains.
Tracing the nickel supply chain from Indonesia to the EU
The destructive Indonesian nickel supply chain
Tracing the nickel supply chain from Indonesia to the EU (Bahasa)
