Indonesia’s Mining Boom Driven by Global Demand: Local Communities Pay the Price

Global demand spurring Indonesia’s mining boom comes at a cost for many communities

KABAENA, Indonesia (AP) — The once pristine blue waters surrounding Kabaena have turned a murky brown, and the vibrant marine life, including octopi and colorful fish, has disappeared. The flourishing seaweed that was once abundant is no longer found here. Parents who have fond memories of swimming in the Flores Sea now caution their children against entering the water, fearing skin irritations or worse.

In Kabaena, home to the Indigenous Bajau community who have historically depended on the sea, the rapid expansion of the mining industry has disrupted the traditional lifestyle of thousands of Indonesian communities. These mining activities primarily support the global supply chain, contributing to products like stainless steel and batteries for electric vehicles.

“Everyone in this area has been affected,” noted Amiruddin, 53, a local fisherman who, like many Indonesians, is known by only one name.

Indonesia, possessing the largest known reserves of nickel along with significant amounts of cobalt and bauxite, is experiencing a surge in mining driven by global demands for materials essential for energy transitions like stainless steel and electric vehicle batteries. This has led to an expansion in both mining and processing operations amidst criticism from both global and local environmental groups.

Nickel processing facilities are increasingly common across Indonesia, sometimes located just minutes away from coastal areas. Barges filled with nickel ore frequently dot the surrounding waters, and some mining operations are uncomfortably close to local schools.

The intense mining demand has placed a significant burden on local communities and the natural environments. Between 2001 and 2020, mining led to the loss of nearly 1.4 million hectares (approximately 3.5 million acres) of forest worldwide, with Indonesia experiencing the highest deforestation rates, according to the World Resources Institute.

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EDITOR’S NOTE: This article is part of a series exploring how tribes and Indigenous communities across the globe are dealing with the impacts of climate change.

On Kabaena, mining companies cleared over 3,700 hectares (about 9,140 acres) of forest, including areas designated as protected, from 2001 to 2023, as reported by the environmental NGO Mighty Earth. This deforestation has severely affected both the environment and the livelihoods of local communities, stated Amanda Hurowitz, a senior director at Mighty Earth.

Where local fishers once thrived, the waters are now contaminated with sediment from mining, leaving them devoid of fish. Fishermen with boats now need to travel greater distances, incurring high fuel costs, only to return with smaller catches that yield less income. Those without boats are left to subsist on whatever small shellfish they can gather from the polluted waters near their homes.

“I used to fish right there by setting up a net,” said Ilyas, 70, pointing in front of his house. “Now, I have to go much farther before I find any fish.”

Agriculture on land is also suffering; crops such as sugar cane, palm, and clove do not thrive due to contaminated water sources. “The growth of our sugar palm trees is stunted due to the mining,” explained Amal Susanto, 32, a palm sugar farmer in an area where exploration is permitted but mining has yet to commence. “I hope there are no mines here, as it would affect our livelihood.”

Health concerns have spiked since the mines opened, with an increase in complaints about itchy skin and sore throats. Residents are reluctant to use the water for bathing or washing clothes, experiencing skin rashes and irritation as a result, shared Nina, 33, an Indigenous Bajau resident of Kabaena.

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Lab tests conducted by the Indonesian environmental NGO Satya Bumi on local river water, sea water, dust, and shellfish in July and November revealed dangerous levels of nickel, lead, and cadmium—typical byproducts of mining. Kathrin Schilling, an assistant professor at Columbia University specializing in molecular biology who reviewed the results, warned of the severe health risks, including potential for cancer and chronic kidney and cardiovascular diseases, associated with these metal levels.

“If the inhabitants of this island rely on river water for drinking, consume local shellfish, and inhale the polluted air, they are virtually inescapable from exposure to these hazardous metals,” Schilling explained to AP.

The detrimental effects of mining are evident beyond Kabaena. To the north, near the village of Torobulu, a nickel mine encroaches upon a worn soccer field and adjacent athletic courts.

Despite a March 2024 ruling from Indonesia’s constitutional court requiring special protections against dangerous activities like mining on small islands, which pose threats to sensitive ecosystems, the government continues to issue mining permits, noted researcher Sayyidatiihayaa Afra from Satya Bumi.

Since the court’s decision, an additional 150 hectares (370 acres) of forest have been cleared for mining on Kabaena, with more than half of this deforestation occurring in a concession owned by Tonia Mitra Sejahtera, according to Mighty Earth. Requests for comments from Tonia Mitra Sejahtera and another significant mining firm, Anugrah Harisma Barakah, went unanswered, as did a request to Indonesia’s Ministry of Energy and Mineral Resources.

Residents like Nina feel a profound sense of helplessness. “What can we do if the water remains polluted?” she lamented. “We are small people; we have no power. We must simply accept our fate.”

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Milko reported from Jakarta.

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