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

This policy brief analyzes the ESG landscape of Indonesia's nickel industry, noting that rapid growth has led to increased carbon emissions, social conflicts, and workplace accidents. It identifies regulatory gaps in biodiversity and human rights and recommends mandating ecosystem assessments, decarbonization plans, and free, prior, and informed consent for local and Indigenous communities to align with international best practices.

• The rapid growth of Indonesia's nickel industry, driven by global demand for renewable energy and batteries, has resulted in significant socio-environmental issues, specifically high carbon emissions, workplace accidents, and an increase in social conflicts.
• A comparison of Indonesia's regulatory framework against international ESG standards reveals gaps in sustainability reporting, community engagement, human rights due diligence, and biodiversity protection.
• To improve the nickel supply chain, the document recommends mandating ecosystem assessments, biodiversity monitoring, and better waste management to strengthen environmental safeguards.
• The brief proposes several governance and social recommendations: mandating human rights due diligence, promoting free, prior, and informed consent for Indigenous and local communities, requiring decarbonization plans and ESG disclosures, and improving benefit-sharing for local communities.

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} }