Toward a More Responsible Critical Minerals Supply Chain Supporting Indonesia’s Energy Transition

The document examines the rapid growth of Indonesia's nickel sector driven by global demand for clean energy technologies, noting that this expansion has caused high carbon emissions, workplace accidents, and social conflicts. It identifies gaps in Indonesia's regulatory framework regarding biodiversity, human rights, and sustainability reporting when compared to international standards. To address these, the brief recommends mandating ecosystem assessments, human rights due diligence, decarbonization plans, and improved benefit-sharing mechanisms for local communities.

• The expansion of Indonesia's nickel mining and processing sector has resulted in significant socio-environmental issues, specifically high carbon emissions, workplace accidents, and an increase in social conflicts.
• Indonesia's current regulatory framework for nickel mining lacks sufficient standards in biodiversity protection, human rights due diligence, community engagement, and sustainability reporting when measured against international ESG standards.
• The brief proposes several policy improvements: mandating ecosystem assessments and biodiversity monitoring, requiring human rights due diligence and free, prior, and informed consent for Indigenous and local communities, and implementing mandatory ESG disclosures and decarbonization plans for all nickel mining companies.
• To ensure a sustainable transition, the document advocates for the mobilization of sustainable finance for ESG-compliant projects and the enhancement of benefit-sharing mechanisms to provide local communities with tangible, long-term benefits.

APA

Bridle,, M. M. (2025). Toward a More Responsible Critical Minerals Supply Chain Supporting Indonesia’s Energy Transition. International Institute for Sustainable Development. https://www.iisd.org/publications/brief/critical-minerals-energy-transition-indonesia

Chicago

Bridle,, Martha Maulidia,Richard. Toward a More Responsible Critical Minerals Supply Chain Supporting Indonesia’s Energy Transition. International Institute for Sustainable Development, 2025. https://www.iisd.org/publications/brief/critical-minerals-energy-transition-indonesia.

Wikipedia

{{cite report |last1=Bridle, |first1=Martha Maulidia,Richard |title=Toward a More Responsible Critical Minerals Supply Chain Supporting Indonesia’s Energy Transition |publisher=International Institute for Sustainable Development |date=9 December 2025 |url=https://www.iisd.org/publications/brief/critical-minerals-energy-transition-indonesia |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bridle2025toward, author = {Bridle,, Martha Maulidia,Richard}, title = {{Toward a More Responsible Critical Minerals Supply Chain Supporting Indonesia’s Energy Transition}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = dec, url = {https://www.iisd.org/publications/brief/critical-minerals-energy-transition-indonesia}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }