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Who benefits? Examining the winners and losers from Indonesia's nickel revolution

Who will be the winners and losers in Indonesia’s nickel rush? The rapid rise of electric vehicles has created a new global scramble for metals. States and governments vie to maximise the value of raw materials crucial to powering the green transition. In Indonesia, an abundance of nickel has attracted large foreign investment and allowed officials to add higher-value production to the domestic mix, but has this boom benefitted artisanal and small-scale mining groups and local communities alike or have the real beneficiaries been large Chinese and state-backed enterprises? In a new paper, JAMES MURPHY, an MA international political economy student at King’s takes a closer look…

On the coast of Morowali Regency, in the Indonesian province of Central Sulawesi, formerly clear coastal waters have turned a reddish-brown colour, thriving fisheries have declined, and many islanders’ health has deteriorated.

Whilst scholars have praised Indonesia’s growing nickel industry as successful economic upgrading by shifting to higher value activities in the nickel supply chain they have overlooked the socio-economic impacts in areas like Morowali.

With global nickel demand set to rise by an additional 19 times by 2040, mainly due to nickel’s use in renewable energy technologies, the uneven impacts of its production must be considered.

To analyse the widening uneven development outcomes caused by the growing Indonesian nickel supply chain, James addresses the question: How has the inclusion and upgrading of some actors in the Indonesian nickel supply chain coincided with the exclusion and marginalisation of other actors?

Read the full essay

You can read James's essay in full here.

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