This study aims to identify and measure the economic value of forests, including their biodiversity and ecosystems, to assess the threats posed by nickel mining activities in Morowali Regency, Central Sulawesi. Central Sulawesi is one of the world’s nickel reserves, an important material in the components of electric vehicle batteries. On the other hand, Sulawesi is also known as a global biodiversity hotspot. Morowali Regency, as the main contributor to Central Sulawesi’s gross regional domestic product (GRDP), faces significant pressure from nickel mining expansion to meet the raw material needs of nickel industrial parks such as the Indonesia Morowali Industrial Park (IMIP) and the Indonesia Huabao Industrial Park (IHIP).
This research utilises secondary data, including information on forest natural resources, spatial data on forest cover, and nickel mining permit data, to identify potential losses resulting from mining activities. The assessment was conducted through an economic valuation approach that included direct benefit value, indirect benefit value, option value, existence value, and legacy value, to provide a comprehensive picture of the economic impact caused by the loss of forest ecosystem functions.
Results indicate that the economic value of forest ecosystems in Morowali Regency could actually exceed the Morowali Regency Government’s Revenue Realisation for 2023 by up to 45%. The largest component of this value comes from indirect benefits, namely the forest’s function as a carbon sink. The analysis also found that around 38.85% of the economic value of the forest, equivalent to Rp1,07 trillion per year, is at risk of being lost due to nickel mining concessions. In addition, the threat of further expansion of nickel mining permits in the future could add to the losses, reaching Rp568 billion per year.
It is confirmed that forest ecosystems have enormous economic value when quantified. If the trend of massive exploitation is not corrected in favour of sustainability, Morowali faces the threat of a socio-ecological crisis that threatens not only the environment but also the welfare of communities across generations. The main recommendations of this study include: the government imposing a moratorium and reviewing all mining permits located in primary forest ecosystems and important biodiversity areas; integrating environmental valuation into regional fiscal policy; and strengthening transparent, participatory, inclusive, and sustainable natural resource governance.
