North Maluku Governor Pushes ESG Principles, Overseeing Mining Industry Practices

The Provincial Government of North Maluku is encouraging businesses to commit to implementing Good Mining Practice by adhering to Environmental, Social, and Governance (ESG) principles in the region. This is deemed crucial to maintaining environmental sustainability. The North Maluku provincial administration is continuously monitoring replanting and reclamation efforts to ensure the industry acts responsibly in restoring forest and environmental functions after mining operations. “Of course, there is damage. Trees are felled. We extract the nickel layer. Will it vanish? Yes, but what needs to be discussed is its management,” stated North Maluku Governor Sherly Tjoanda Laos during the Closing Bell programme on CNBC Indonesia, Tuesday (11/05/2026). Therefore, ESG implementation must be a key focus in safeguarding the nickel industry. The approach involves ensuring responsible nickel management. “The bottom line is that nickel is used for batteries, which are a green product. It is impossible to use a green product if the process itself is not green,” Sherly asserted. Beyond replanting and reclamation, Sherly revealed that restored land is subsequently repurposed as social forestry areas or returned to the community for planting cloves, nutmeg, and coconuts. “So, we ensure that what is taken from beneath the ground is followed by a focus on restorative efforts, on reclaiming what has been extracted,” she said. Furthermore, Sherly disclosed that nickel downstreaming will continue in North Maluku over the next ten years. She even projected that several electric vehicle battery factories would be established in the province. “I envision that in ten years, North Maluku will become a model of how a province utilises its natural resources as capital to empower its human resources,” she emphasised. For context, as of the first quarter of 2026, North Maluku Province recorded economic growth of 19.6%, largely supported by downstreaming, particularly of nickel. Nickel downstreaming has also generated a multiplier effect, including the creation of 100,000 jobs and increased economic turnover.