House of Representatives to Scrutinise Environmental Management at Nickel Smelters in Southeast Sulawesi
JAKARTA - Efforts to improve the quality of environmental management in the nickel industry sector have once again drawn serious attention from the House of Representatives (DPR). During a working visit to Southeast Sulawesi, Commission XII member Rocky Candra stated his institution's commitment to comprehensively discussing the environmental aspects accompanying nickel processing activities in the region.
Attention has been directed particularly at two major companies in the Morosi subdistrict area of Konawe regency, namely PT Virtue Dragon Nickel Industry (VDNI) and PT Obsidian Stainless Steel (OSS), both of which form part of the national nickel smelter ecosystem.
Rocky Candra revealed that Commission XII had received reports regarding the results of the Company Performance Rating Programme (Proper), which recorded both PT VDNI and PT OSS at the red rating level. This has become a matter of serious concern given that Proper is one of the key indicators for assessing corporate compliance with environmental regulations.
"We are examining this in depth and have requested statements from VDNI and OSS," said Rocky.
He further noted that the DPR had also received input from local communities, including reports from local health facilities indicating a high number of patient visits with symptoms of acute respiratory infections (ISPA).
"This is also a separate concern regarding environmental impact, in addition to the red Proper rating," he added.
Commission XII is now formulating further strategic measures. The matter will be discussed further with relevant ministries within the framework of a specially formed Working Committee (Panja) for environmental and health issues arising from industrial activities. The Panja will involve the Ministry of Environment and Forestry (KLHK) and the Ministry of Energy and Mineral Resources (ESDM).
"Yes, we will bring this to the Panja," Rocky affirmed, signalling the DPR's seriousness in carrying out its oversight function.
These measures also include a request to the KLHK to deploy a team from the Directorate General of Law Enforcement (Gakkum) to review and follow up on alleged cases of environmental pollution in the operational areas of both companies.
"So that Gakkum at the Ministry of Environment can examine all of this," he continued.
Support for improved environmental governance was also expressed by the companies. PT OSS, through its spokesperson, stated its commitment to realigning its business activities with prevailing regulations in Indonesia.
"We at OSS will certainly comply with existing regulations in Indonesia. We were not aware of this information and will first investigate further what has actually occurred, and will certainly comply once we understand the situation," explained Mr Wang, a representative of PT OSS.
The company's open stance indicates positive room for dialogue between business and regulators, enabling sustainable solutions to be found promptly without causing broader social impact.
In a wider context, the case has also entered the legal sphere. The Unaaha District Court is processing an environmental lawsuit filed by the Indonesian Forum for the Environment (Walhi) Southeast Sulawesi chapter together with local residents. The lawsuit highlights issues such as environmental damage, violations of the right to health, and economic losses suffered by communities allegedly affected by industrial activities.
Although legal proceedings are ongoing, the attention now emerging from various parties — legislative, executive, and corporate — presents an opportunity to strengthen the precautionary principle in the exploitation of natural resources, particularly nickel, which is one of the nation's strategic commodities in the clean energy transition.
Nickel, as a strategic resource critically needed in the battery and electric vehicle industries, is now also required to be developed under strict sustainability principles. This is essential to ensure that economic progress aligns with the protection of the environment and public health.
Through the establishment of the Panja by the DPR, various aspects of oversight will be discussed more systematically and comprehensively. Meanwhile, the companies' openness to conducting internal evaluations demonstrates a collaborative spirit in realising responsible industry practices.
The legislature's seriousness in responding to community reports and environmental evaluation results reflects the living principle of checks and balances in democracy. Thus, the transformation of the nickel industry must not only pursue production and export targets but also prioritise sustainability values that support local community welfare and environmental preservation.
If collaboration between government, industry players, and civil society continues to be strengthened, Indonesia stands a chance of becoming an exemplar in the management of natural resource-based industries that are not only globally competitive but also dignified and ecologically sustainable.
Attention has been directed particularly at two major companies in the Morosi subdistrict area of Konawe regency, namely PT Virtue Dragon Nickel Industry (VDNI) and PT Obsidian Stainless Steel (OSS), both of which form part of the national nickel smelter ecosystem.
Rocky Candra revealed that Commission XII had received reports regarding the results of the Company Performance Rating Programme (Proper), which recorded both PT VDNI and PT OSS at the red rating level. This has become a matter of serious concern given that Proper is one of the key indicators for assessing corporate compliance with environmental regulations.
"We are examining this in depth and have requested statements from VDNI and OSS," said Rocky.
He further noted that the DPR had also received input from local communities, including reports from local health facilities indicating a high number of patient visits with symptoms of acute respiratory infections (ISPA).
"This is also a separate concern regarding environmental impact, in addition to the red Proper rating," he added.
Commission XII is now formulating further strategic measures. The matter will be discussed further with relevant ministries within the framework of a specially formed Working Committee (Panja) for environmental and health issues arising from industrial activities. The Panja will involve the Ministry of Environment and Forestry (KLHK) and the Ministry of Energy and Mineral Resources (ESDM).
"Yes, we will bring this to the Panja," Rocky affirmed, signalling the DPR's seriousness in carrying out its oversight function.
These measures also include a request to the KLHK to deploy a team from the Directorate General of Law Enforcement (Gakkum) to review and follow up on alleged cases of environmental pollution in the operational areas of both companies.
"So that Gakkum at the Ministry of Environment can examine all of this," he continued.
Support for improved environmental governance was also expressed by the companies. PT OSS, through its spokesperson, stated its commitment to realigning its business activities with prevailing regulations in Indonesia.
"We at OSS will certainly comply with existing regulations in Indonesia. We were not aware of this information and will first investigate further what has actually occurred, and will certainly comply once we understand the situation," explained Mr Wang, a representative of PT OSS.
The company's open stance indicates positive room for dialogue between business and regulators, enabling sustainable solutions to be found promptly without causing broader social impact.
In a wider context, the case has also entered the legal sphere. The Unaaha District Court is processing an environmental lawsuit filed by the Indonesian Forum for the Environment (Walhi) Southeast Sulawesi chapter together with local residents. The lawsuit highlights issues such as environmental damage, violations of the right to health, and economic losses suffered by communities allegedly affected by industrial activities.
Although legal proceedings are ongoing, the attention now emerging from various parties — legislative, executive, and corporate — presents an opportunity to strengthen the precautionary principle in the exploitation of natural resources, particularly nickel, which is one of the nation's strategic commodities in the clean energy transition.
Nickel, as a strategic resource critically needed in the battery and electric vehicle industries, is now also required to be developed under strict sustainability principles. This is essential to ensure that economic progress aligns with the protection of the environment and public health.
Through the establishment of the Panja by the DPR, various aspects of oversight will be discussed more systematically and comprehensively. Meanwhile, the companies' openness to conducting internal evaluations demonstrates a collaborative spirit in realising responsible industry practices.
The legislature's seriousness in responding to community reports and environmental evaluation results reflects the living principle of checks and balances in democracy. Thus, the transformation of the nickel industry must not only pursue production and export targets but also prioritise sustainability values that support local community welfare and environmental preservation.
If collaboration between government, industry players, and civil society continues to be strengthened, Indonesia stands a chance of becoming an exemplar in the management of natural resource-based industries that are not only globally competitive but also dignified and ecologically sustainable.