Jakarta, 29 July 2025

A recent report from Aksi Ekologi dan Emansipasi Rakyat (AEER) reveals that the Total Economic Value (TEV) of Morowali Regency’s forests amounts to IDR 2.81 trillion per year, approximately 44.6% more than the local government’s revenue in 2023, which was IDR 1.94 trillion.

However, around IDR 1.07 trillion per year of that environmental value lies within nickel mining concessions and is at risk of being lost. If mining expansion continues, the potential annual economic loss could increase by up to IDR 568 billion.

The report was prepared using a total economic valuation approach as outlined in the Indonesian Ministry of Environment Regulation No. 15 of 2012 on forest ecosystem economic valuation, incorporating direct and indirect benefits, existence value, option value, and bequest value. Analysis used natural resource and nickel mining licensing data from 2023–2025, with spatial overlays done in ArcGIS, and economic valuations based on market pricing and benefit‑transfer methods for non‑market forest services.

Morowali Regency is a major economic center in Central Sulawesi, largely driven by nickel industrial hubs such as Indonesia Morowali Industrial Park (IMIP) and Indonesia Huabao Industrial Park (IHIP). Yet the rapid growth has amplified pressure on forest ecosystems, which not only provide local environmental buffering but also play significant roles in carbon sequestration and ecological balance

“In Sulawesi, which is both strategically rich in nickel and one of the world’s most biodiverse regions, the imbalance between exploitation and forest protection can lead to long‑term ecological and economic losses,” said AEER researcher Risky Saputra at the report launch at Hotel Morrissey, Central Jakarta, on Tuesday, July 29, 2025.

The report’s findings are particularly timely ahead of Indonesia’s submission of its Second Nationally Determined Contribution (SNDC) under the UNFCCC at COP 30 in November 2025. The SNDC will formalize the forestry sector’s contribution toward the FoLU (Forestry and Other Land Use) Net‑Sink 2030 target of 140 million tons CO₂e sequestration by 2030

The Morowali forest itself absorbs over 1.1 million tons of CO₂e per year, making it a key national mitigation asset. Yet between 2019 and 2023, national nickel mining activity caused 37,660 hectares of tree cover loss, equivalent to 28.7 million tons CO₂ emission, and about 16% (6,110 ha) occurred in Morowali mining areas

Currently, 35% of Morowali’s territory—157,935 hectares—is under nickel mining concessions across 70 companies, of which 133,256 ha are forest areas, including 97,790 ha of primary forest that should be protected.

“Without strong policy interventions, the pressure from the nickel industry will accelerate deforestation and threaten national climate goals and biodiversity,” warned Meity Ferdiana Pakual, researcher at Tadulako University. “This economic valuation provides a strong foundation for a moratorium on new permits in primary and high‑biodiversity forest areas.”

Morowali is home to endemic species such as the Critically Endangered Maleo (Macrocephalon maleo), Sulawesi Hornbill (Rhyticeros cassidix), and the Spectacled Macaque (Macaca ochreata), among many other flora and fauna records in the GBIF biodiversity database.

During the launch discussion, Professor Akhmad Fauzi of IPB University highlighted the need to rethink natural resources—not merely as production factors but as natural capital. “When forests are cut without enhancing their added value, our assets suffer huge depreciation,” he said, adding that the report demonstrates how Morowali’s natural assets far exceed its APBD revenues.

He also urged creation of a resource fund—a financial mechanism from natural resource utilization to strengthen that capital, through agriculture, tourism, and environmental services.

Regarding regional planning, Subhan Basir, Head of Infrastructure and Territorial Affairs at Southeast Sulawesi Bappeda, stated that the 2025–2029 RPJMD is nearing finalization. “We will submit input from this report to leadership,” he said.

AEER’s recommendations include:

1. Halt issuance of new permits in primary forest and high‑biodiversity areas, and conduct comprehensive evaluation of existing permits until the Global Biodiversity Framework roadmap is implemented.
2. Integrate ecosystem protection finance potential into regional and national planning (RPJMD, RPJMN, SNDC) to balance nickel sector revenues with ecological costs.
3. Mobilize restoration financing (result‑based finance) so Morowali’s forests can play a central role in achieving FoLU Net‑Sink 2030.

The report underscores that neglecting Morowali’s ecological value weakens Indonesia’s standing in international climate diplomacy and increases the national mitigation burden.