Celios Reveals China As The Most Profitable Country Of RI's Nickel Downstream

Executive Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira. (Photo: Theresia Agatha/VOI)

JAKARTA - Executive Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira said China is the country that benefits the most from downstreaming of Indonesian nickel.

Bhima assessed that the claims of several parties who said downstream nickel would benefit Indonesia were not entirely correct.

"When asked who benefited the most from downstream nickel, 80-90 percent of China became the main connoisseur," said Bhima in Jakarta, quoted Wednesday, February 21.

He claims, China is the main actor in this industry. Worse, many Chinese companies do not use concepts that prioritize sustainability or environmental, social and governance (ESG).

"Currently, China is the largest investor in coal-fired power plants in Indonesia, with more than 70 percent ownership owned by 14 private and state-owned metal processing and mining companies," said Bhima.

On the same occasion, Bhima also explained Celios' findings about the amount of Indonesian employment from nickel downstream.

"In the first year alone, our findings showed negative results on the labor absorption indicator, the exact number was in -1,309 people," he said.

In addition, Indonesia has three main nickel smelters, namely in Central Sulawesi, Southeast Sulawesi, and North Maluku.

According to Bhima, employment in Central Sulawesi showed results of -4,429 in the first year. Then, Southeast Sulawesi (2,733) and North Maluku (3,205).

"This means that downstream nickel is completely unable to absorb labor even at the beginning of the year of implementation," he said.

Bhima added, because of the downstream nickel, the agricultural sector was considered the deepest decline followed by other sectors in the ninth year of the nickel industry in North Maluku.

"Deforestation accompanied by a decrease in the quality of clean water and air has an effect on the total output of this nickel industry," he added.