Last update:
2022-10-01

Indonesia Weda Bay Industrial Park (IWIP), North Maluku, Indonesia

Th IWIP has raised environmental, social and health concerns, including the displacement of indigenous communities, and faced a number of protests related to nickel mining, processing and captive CFPP activities.



Description:

The Indonesia Weda Bay Industrial Park (IWIP)  is a mega-nickel integrated mining and smelter project [1] and also the “first vertical, from mine mouth to finished products, integrated Electric Vehicle battery and stainless steel industry complex in the world”[2], [3]. It is located in Weda, Central Halmahera Regency, North Maluku, Indonesia [3]. The IWIP is one of Indonesia’s strategic projects, designed to expand its domestic nickel processing capacity after the country banned unprocessed ore exports [4]. It is a joint venture between three Chinese companies, namely Tsingshan Group (40% shareholding through its subsidiary Perlus Technology), Huayou Group (30%) and Zhenshi Group (30%) [4].

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Basic Data
Name of conflict:Indonesia Weda Bay Industrial Park (IWIP), North Maluku, Indonesia
Country:Indonesia
State or province:North Maluku
Location of conflict:Weda, Central Halmahera Regency
Accuracy of locationHIGH (Local level)
Source of Conflict
Type of conflict. 1st level:Mineral Ores and Building Materials Extraction
Type of conflict. 2nd level:Mineral ore exploration
Thermal power plants
Mineral processing
Specific commodities:Coal
Nickel
Project Details and Actors
Project details

The Indonesia Weda Bay Industrial Park (IWIP) is a mega-nickel integrated mining and smelter project [1] and also the “first vertical, from mine mouth to finished products, integrated Electric Vehicle battery and stainless steel industry complex in the world”[2], [3]. It is located in Weda, Central Halmahera Regency, North Maluku, Indonesia [3]. It is a joint venture with 11 billion investment between three Chinese companies, namely Tsingshan Group (40% shareholding through its subsidiary Perlux Technology), Huayou Group (30%) and Zhenshi Group (30%) [4]. The IWIP project requires a land area of 1,000 hectares and will provide space for tenants of ferronickel smelters, ferrochrome smelters, stainless steel plant, coke plant, carbon steel plant, and hydrometallurgical plant [5]. According to the information published by Global Energy Monitor, the total coal-fired power capacity operating or under development at Weda Bay is 3,400 MW (6 x 250 MW + 5 x 380 MW), while the lack of transparency makes it difficult to estimate the exact capacity of CFPP in operation and under development at IWIP [1], [6].

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Project area:1,000
Level of Investment for the conflictive project11,000,000,000
Type of populationRural
Affected Population:5,000
Start of the conflict:01/01/2018
Company names or state enterprises:Perlux Technology from China - Shareholder of IWIP
Eramet from France
Zhenshi Holding Group Co., Ltd. from China - Shareholder of the IWIP
Huayou Cobalt Co., Ltd from China - Shareholder of the IWIP
Tsingshan Holding Group Co., Ltd. (Tsingshan Group) from China - Shareholder of the IWIP
PT Antam from Indonesia - Shareholder of PT WBN
Strand Minerals from Indonesia - Shareholder (90%) of WBN
PT Tekindo Energy from Indonesia
Relevant government actors:Central Halmahera Regency Government
International and Finance InstitutionsThe World Bank (WB) from United States of America
Environmental justice organizations (and other supporters) and their websites, if available:- Action for Ecology and People's Emancipation (AEER) https://aeer.info/en/homepage-en/
- Aliansi Masyarakat Adat Nusantara (Indigenous Peoples Alliance of the Archipelago, AMAN): https://www.aman.or.id/
- AMAN North Maluku (Malut): https://malut.aman.or.id/
- Student Action Solidarity for the Indonesian People (Samurai) Malut
- Sylfa Student Association of Kharun University
- Aliansi Masyarakat Ake Jira Halmahera (the Ake Jira Halmahera Community Alliance, AMARAH): a coalition of organizations, including Walhi Malut, AMAN Malut, LBH Marimoi, Daurmala, FNKSD, Sekolah Critis, GeMPAR, SAMURAI, LMND, GAMHAS, The Buas, PANDECTA, KAMMI IAIN, Jendela Mahasiswa Politik, Pusmat, Gemah IAIN, Jejak Timur, SEMUT, DEMA Ekonomi IAIN, and Gerilya Institut
Conflict & Mobilization
IntensityHIGH (widespread, mass mobilization, violence, arrests, etc...)
Reaction stageIn REACTION to the implementation (during construction or operation)
Groups mobilizing:Indigenous groups or traditional communities
Local ejos
Neighbours/citizens/communities
Ethnically/racially discriminated groups
Students
Forms of mobilization:Blockades
Development of a network/collective action
Development of alternative proposals
Involvement of national and international NGOs
Official complaint letters and petitions
Public campaigns
Street protest/marches
Impacts
Environmental ImpactsVisible: Air pollution, Loss of landscape/aesthetic degradation, Soil contamination, Deforestation and loss of vegetation cover, Surface water pollution / Decreasing water (physico-chemical, biological) quality, Groundwater pollution or depletion
Potential: Biodiversity loss (wildlife, agro-diversity), Floods (river, coastal, mudflow), Global warming
Health ImpactsVisible: Other environmental related diseases
Other Health impactsRespiratory diseases due to air pollution indicated by local residents
Socio-economical ImpactsVisible: Displacement, Loss of livelihood, Loss of traditional knowledge/practices/cultures, Violations of human rights, Land dispossession, Loss of landscape/sense of place
Outcome
Project StatusIn operation
Conflict outcome / response:Migration/displacement
Proposal and development of alternatives:Indonesian NGO AEER made a series of recommendations to the government, investors and the public in the report "Fast and furious for future: the dark side of electric vehicle battery components and their social and ecological impacts in Indonesia" published in April 2021. Notice that Indonesia has not ratified ILO Convention 169.
Do you consider this an environmental justice success? Was environmental justice served?:No
Briefly explain:The endangered indigenous group O Hongana Manyawa (also referred to as Tobelo Dalam) has been displaced from Ake Jira forest that is connected to their traditions and cultural roots. The compensation is extremely low for the land sold to the mining companies and IWIP. The reclamation efforts continued to occupy land areas that used to be inhabited by local communities for livelihood and fishing activities.
Sources & Materials
Juridical relevant texts related to the conflict (laws, legislations, EIAs, etc)

ILO Indigenous and Tribal Peoples Convention, 1989 (No. 169)
[click to view]

Indonesian Constitutional Court Decision Number 35/PUU-X/2012 regarding customary forests (not state forests)
[click to view]

UN Declaration on the rights of the indigenous peoples
[click to view]

References to published books, academic articles, movies or published documentaries

"Halmahera Forest People: O Hongana mo Nyawa", a brief animated introduction made and produced by Udayapusthikaswasti Halim on the Tobelo Dalam (Halmahera Forest People) or O Hongana Manyawa, 12 October 2019. Accessed in October 2022 at: https://www.youtube.com/watch?v=XvwsHnDxasw&ab_channel=MataAdat
[click to view]

[1] I. Morse, “Coal-powered industrial parks test Indonesia’s climate pledges – and China’s too,” China Dialogue, Mar. 30, 2022. https://chinadialogue.net/en/energy/coal-powered-industrial-parks-test-indonesias-climate-pledges-and-chinas-too/ (accessed Jul. 20, 2022).
[click to view]

[2] S. Marshall, K. Taylor, and S. Balaton-Chrimes, “Case Study of the CAO’s Approach to the PT Weda Nickel Mine Complaint: Barriers to Mediation in a Climate of Fear,” 2016. Accessed: Sep. 19, 2022. [Online]. Available: https://corporateaccountabilityresearch.net/njm-report-x-weda-bay
[click to view]

[3] A. Barahamin, “Global Race for Electric Car Components is Threatening Indigenous Peoples in Indonesia,” Earth Journalism Network, Nov. 26, 2021. https://earthjournalism.net/stories/global-race-for-electric-car-components-is-threatening-indigenous-peoples-in-indonesia (accessed Jul. 21, 2022).
[click to view]

[4] F. Nangoy, “Six workers injured after fire at Indonesia’s Weda Bay nickel smelter,” Reuters, Jun. 16, 2021. https://www.reuters.com/world/asia-pacific/six-workers-injured-after-fire-indonesias-weda-bay-nickel-smelter-2021-06-16/ (accessed Sep. 26, 2022).
[click to view]

[5] M. Ichi, “Orang Tobelo Dalam Khawatir Perusahaan Tambang Rusak Hutan Ake Jira,” Mongabay, Oct. 19, 2019. https://www.mongabay.co.id/2019/10/19/orang-tobelo-dalam-khawatir-perusahaan-tambang-rusak-hutan-ake-jira/ (accessed Sep. 19, 2022).
[click to view]

[6] Global Energy Monitor, “Weda Bay power station,” Global Energy Monitor, Jul. 07, 2022. https://www.gem.wiki/Weda_Bay_power_station (accessed Jul. 20, 2022).
[click to view]

[7] Eramet, “The remarkable success story of Weda Bay Nickel,” Eramet. https://www.eramet.com/en/activities/development-projects/remarkable-success-story-weda-bay-nickel (accessed Jul. 13, 2022).
[click to view]

[8] S. G. Cardiff, “Supplemental Biodiversity Review of Weda Bay Nickel Project,” Jul. 2010. Accessed: Oct. 01, 2022. [Online]. Available: https://earthworks.org/wp-content/uploads/2021/09/EW_review_WedaBayNickel_biodiversity.pdf
[click to view]

[9] M. Rushdi, A. Sutomo, S. Pius, G. Risdianto, and M. Anwar, “Fast and furious for future: the dark side of electric vehicle battery components and their social and ecological impacts in Indonesia,” Rosa Luxemburg Stiftung, Apr. 2021. http://www.rosalux.de/fileadmin/images/publikationen/Studien/Fast_and_Furious_for_Future.pdf (accessed Feb. 19, 2022).
[click to view]

[10] I. Morse, “Indonesia has a long way to go to produce nickel sustainably,” China Dialogue, May 28, 2021. https://chinadialogue.net/en/pollution/indonesia-has-a-long-way-to-go-to-produce-nickel-sustainably/ (accessed Feb. 21, 2022).
[click to view]

[11] Earthworks, “Weda Bay,” Earthworks. https://earthworks.org/stories/weda_bay/ (accessed Feb. 21, 2022).
[click to view]

[12] A. Barahamin, “Mining greed could doom Indonesian forest people,” Southeast Asia Globe, Nov. 14, 2019. https://southeastasiaglobe.com/mining-greed-could-doom-indonesian-forest-people/ (accessed Oct. 01, 2022).
[click to view]

[13] “Mahasiswa dan Warga di Weda Utara Protes Izin Tambang,” PW AMAN Maluku Utara, Jul. 25, 2019. https://malut.aman.or.id/2019/07/25/mahasiswa-dan-warga-di-weda-utara-protes-izin-tambang/ (accessed Jul. 12, 2022).
[click to view]

[14] R. H. Husni, “Tangis Dalia: Kabar dari Halmahera,” Mantra, Nov. 30, 2019. https://lpmmantra.com/tangis-dalia-kabar-dari-halmahera/ (accessed Oct. 01, 2022).
[click to view]

[15] “Aji dan Samurai Gelar Diskusi Bertajuk ‘Ake Jira Halmahera,’” Mantra, Sep. 22, 2019. https://lpmmantra.com/aji-dan-samurai-gelar-diskusi-bertajuk-ake-jira-halmahera/ (accessed Oct. 01, 2022).
[click to view]

[16] “PT. IWIP Jawab Soal Masalah di Akejira, Halmahera,” Cermat, Oct. 19, 2019. https://kumparan.com/ceritamalukuutara/pt-iwip-jawab-soal-masalah-di-akejira-halmahera-1s5R4ErWMdK (accessed Sep. 20, 2022).
[click to view]

[17] J. Bobero, “Warga Tobelo Dalam Ake Jira So Lari,” Mantra, Oct. 25, 2019. https://lpmmantra.com/warga-tobelo-dalam-ake-jira-so-lari/ (accessed Oct. 01, 2022).
[click to view]

[18] “中国能建再次中标印尼电厂钢结构制作项目,” Jul. 27, 2022. (accessed Oct. 01, 2022).
[click to view]

[19] Eramet, "WEDA BAY NICKEL: THE EMERGENCE OF A LEADING PRODUCER OF NICKEL FERROALLOYS", https://www.eramet.com/en/group/subsidiaries/weda-bay-nickel, accessed in October 2022.
[click to view]

Related media links to videos, campaigns, social network

"The Halmahera Forest Defender: Tobelo Dalam of Akejira", a Youtube video made by Mata Adat to share about the indigenous group Tobelo Dalam in the Ake Jira forest and the challenges they face, 29 September 2019. Accessed in October 2022 at: https://www.youtube.com/watch?v=vM4gW4m34Ug&t=2s&ab_channel=MataAdat
[click to view]

"#SelamatkanAkejira" ("Save Akejira"), a Youtube video by Mata Adat, 9 September 2019. Accessed in October 2022 at https://www.youtube.com/watch?v=t0uGSQUE4yo&ab_channel=MataAdat
[click to view]

Meta information
Contributor:EJAtlas team
Last update01/10/2022
Conflict ID:6054
Comments
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