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All Journal Journal of Environmental Economics and Sustainability
Aji, Bintang Mahardika Pramanda
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Economics, Econometrics & Finance Environmental Science Social Sciences

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The Impact of Nickel Downstreaming Policy on Environmental Damage in Konawe Regency, Southeast Sulawesi Kusuma, Aldi; Baihaqqi, Dustin Ahmad; Salsabila, Defira Alya; Aji, Bintang Mahardika Pramanda; Iradhad Taqwa Sihidi
Journal of Environmental Economics and Sustainability Vol. 3 No. 2 (2026): February
Publisher : Indonesian Journal Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.47134/jees.v3i2.1068

Abstract

This study analyzes the ecological impacts of Indonesia’s nickel downstreaming policy on biodiversity and local ecosystems in Konawe Regency, Southeast Sulawesi, using a political ecology approach. A qualitative descriptive method was employed based on literature review and secondary data from policy documents, government reports, scientific publications, and environmental agency records. The analysis examined land cover change, habitat fragmentation, degradation of aquatic ecosystems, and power relations in nickel mining governance.The findings indicate that the expansion of downstream nickel industries has accelerated forest conversion, fragmented terrestrial habitats, increased river sedimentation, and reduced aquatic habitat quality, thereby threatening local biodiversity sustainability. These environmental pressures are closely linked to governance dynamics in which economic growth and state interests dominate decision-making, while environmental protection and conservation measures receive limited attention.From a political ecology perspective, the downstreaming policy reproduces unequal power relations that marginalize ecological considerations at the local level. The study concludes that the effectiveness of downstreaming should not be assessed solely through economic indicators but must incorporate ecological sustainability and biodiversity safeguards. Policy reform is required to integrate environmental carrying capacity, strengthen local monitoring mechanisms, and ensure more inclusive and balanced governance of resource extraction
Co-Authors Baihaqqi, Dustin Ahmad Iradhad Taqwa Sihidi Kusuma, Aldi Salsabila, Defira Alya