While the world scrambles to achieve net zero, growing awareness is emerging about human rights abuses and environmental harms within the critical minerals supply chains essential for a successful climate transition. This report focuses on two nickel industrial parks in Indonesia, which possesses the world’s largest nickel reserves and is projected to dominate global production, accounting for 62% by 2030.

The parks are the Indonesia Morowali Industrial Park (IMIP) and the Indonesia Weda Bay Industrial Park (IWIP), which are primarily dominated by Chinese companies and tightly controlled by both Chinese and Indonesian governments. This report is the first to uncover the presence of Taiwanese publicly listed multinationals in Indonesia’s nickel industry – Walsin Lihwa Corporation and Yieh Phui Enterprise – highlighting their potential to illuminate the opaque industry and promote business practices that respect human rights and the environment.

Walsin Lihwa, through its subsidiaries, produces nickel pig iron and nickel matte, and operates a coal-fired power plant at IMIP and IWIP. It sources nickel from controversial companies like PT Sambaki Tambang Sentosa, which has faced land disputes and allegations of human rights abuses. The company also sells its nickel products to Chinese firms linked to environmental and labor violations. Walsin Lihwa’s involvement extends to the purchase of stainless steel products from Indonesian manufacturers, further embedding it in the global nickel supply chain.

Yieh Phui Enterprise, via several of its subsidiaries, mines nickel and is evaluating building a nickel smelter in Indonesia, via its subsidiary Asiamax Mining Indonesia, operates a nickel smelter in Morowali and is involved in multiple nickel-related ventures. Its company, PT Genba Multi Mineral, has been accused of land grabs and environmental damage, particularly harming aquaculture and livelihoods in local communities. Despite these controversies, Taiwanese companies have the potential to influence more ethical and sustainable practices in this opaque industry by promoting transparency and addressing the severe environmental and human rights concerns that plague Indonesia’s nickel sector.

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