15 July 2025 –

Aksi Ekologi dan Emansipasi Rakyat (AEER) officially launched the report, titled “Clean Cars, Dirty Nickel: Indonesia–China–Germany Nickel Supply Chains for Electric Vehicle Batteries,” on 15 July 2025. The study maps key actors in the nickel battery supply chain and exposes environmental degradation and human rights violations within Indonesia’s nickel industry.

AEER urges German electric vehicle manufacturers that use Indonesian nickel to conduct stringent due diligence across their nickel supply chains. Utilizing a critical legal-human rights framework, the study emphasizes that downstream actors in Germany are obligated—under the Germany Supply Chain Due Diligence Act, the EU Corporate Sustainability Due Diligence Directive, and the EU Battery Regulation—to prevent environmental harm and human rights abuses linked to their nickel sourcing.

The Hidden Toll of the Nickel Industry

Multiple cases spotlighted in the public discussion include:

Deforestation in O’Hongana Manyawa: Between 2020 and 2023, PT Weda Bay Nickel cleared 1,105 hectares of indigenous forest, displacing local communities and destroying their homes, food sources, cultural values, and spiritual heritage—effects that will reverberate across generations.

Ecological disaster in Weda Bay: In July 2024, mining operations around Weda Bay triggered a major environmental incident, affecting four villages in Central Weda subdistrict and devastating the livelihoods of some 6,500 residents. The frequent flooding, caused by the nickel industry’s expansion, signals a lack of enforcement against environmental damage.

Air pollution from captive coal plants: PT Huafei Nickel Cobalt and PT Huayue Nickel Cobalt operate 500 MW power plants while PT Huake Nickel Indonesia runs a 250 MW facility, all of which operate without publicly reported emission data. Local clinic (Puskesmas Lelilef) records show a rise in respiratory illnesses—from 351 cases in 2018 to 2,745 in 2024—linking health impacts to the industry.

Reactions & Statements

Anis Hidayah, Chair of Indonesia’s National Human Rights Commission (Komnas HAM), noted structural challenges:
“The state still lacks comprehensive policies and consistent oversight mechanisms. Without proper monitoring, human rights violations in business will repeat daily. Multi‑stakeholder engagement is vital to hold accountable both state and corporate actors and ensure remediation for victims.”

Putra Adhiguna, Managing Director of Energy Shift Institute, emphasized:
“All stakeholders must find common ground in this complex issue. Indonesia must elevate its nickel production standards to compete globally. Whatever happens along the nickel supply chain must be accountable and fully traceable.”

Stevanus, Director of Public Affairs for Huayou Indonesia, welcomed the report:
“Huayou remains open to feedback and strives to incorporate it for a more responsible and sustainable industry.”

Anto Sangadji, report author and AEER Board member, urged government intervention:
“The government must strictly regulate HPAL technology expansion—not halt it, but control it responsibly.”

Pradnya Paramarini, AEER report author, added:
“With global demand for electric vehicles surging alongside contradictory environmental and human rights practices, public safety must be the top priority. No community should be sidelined for profit. Multi‑stakeholder assessments involving government, corporations, CSOs, and media are essential to evaluate whether production limits are needed, considering environmental capacity and community impact.”

Linda Dewi Rahayu, report author and policy analyst, observed:
“Discussing legal and human rights violations also means considering human and ecological impacts—more than just regulatory reform. This research speaks for ethnic communities, farmers, and workers whose voices are overlooked. We hope it prompts not only mitigation but also the stopping of abuses and the development of people-centered policies.”