The Suffering Behind the War of Words Between Tom Lembong and Ministers Luhut & Bahlil

Press Release, Mining Advocacy Network (JATAM), Jan 26, 2024

Indonesia’s Investment Minister Bahlil Lahadalia and Coordinating Minister for Maritime Affairs and Investment Gen. (Retd.) Luhut Binsar Pandjaitan have issued strong responses to remarks made by Thomas Lembong, co-head of the national presidential election campaign of candidates Anies Baswedan and Muhaimin Iskandar, about Indonesia’s nickel processing policy and electric vehicle industry.

In a recent post by the podcast Total Politik, Lembong, a former Trade Minister and head of Indonesia’s Investment Coordinating Board (BKPM), criticized the extensive smelting initiatives, warning that domestic oversupply risks could depress nickel prices.(1) He also highlighted Tesla’s shift in China to Lithium Ferro Phosphate (LFP) batteries, which eliminates the need for nickel altogether.(2)

The ensuing war of words reflects a focus among Indonesia’s political elite on industrial priorities rather than the welfare of impacted communities. Neither Lembong, nor Ministers Luhut and Bahlil, have publicly acknowledged the detrimental effects of nickel downstreaming on local populations, which has left many impoverished while boosting industry profits.(3) Nickel extraction expansion has displaced communities, polluted water sources, damaged marine ecosystems, degraded forests, and triggered health crises, violence, criminalization, and workplace accidents—some resulting in fatalities.

Also Read: Elections: China Downstream, The Tentacles of Indonesia’s Nickel Oligarchy By Project Multatuli

This dire situation is evident across Indonesia’s major nickel industrial estates, from PT Indonesia Morowali Industrial Park (IMIP) in Morowali in southern Sulawesi, PT Gunbuster Nickel Industry in North Morowali, Virtue Dragon Nickel Industry in Konawe, Indonesia Weda Bay Industrial Park (IWIP) in Central Halmahera in Maluku province, to the industrial complexes on Obi Island under the Harita Group’s control.

The political and business dynamics of these clashes, set against the backdrop of Indonesia’s 2024 presidential election, reveal more than just the flaws in President Joko Widodo’s accelerated nickel downstreaming agenda. Co-ordinating Minister Luhut and Minister Bahlil’s opposition to Lembong’s criticisms could be seen as defending vested interests within Indonesia’s political-business complex.(4)

Minister Bahlil, for instance, has ties to PT Meta Mineral Pradana, a nickel mining company with two concessions in North Konawe, Southeast Sulawesi, owned by his PT Papua Bersama Unggul (90% ownership) and PT Rifa Capital (10%).

Similarly, Co-ordinating Minister Luhut’s stake connects him to PT Energi Kreasi Bersama (Electrum), a joint venture between PT GoTo Gojek Tokopedia Tbk and PT TBS Energi Utama Tbk (TOBA), a company owned by Luhut. Electrum focuses on developing an integrated electric vehicle ecosystem, from manufacturing electric motorcycles and battery technology to battery swapping stations and charging infrastructure. Through GoTo, Luhut’s interests align with Garibaldi “Boy” Thohir, a recent vocal supporter of the presidential election candidates Prabowo Subianto and President Joko Widodo’s son Gibran.(5) Boy Thohir holds shares in and sits on the Board of Commissioners of GoTo.(6)

Ultimately, the high-profile clash involving Tom Lembong, Luhut, and Bahlil appears to prioritize personal and industrial interests over the environmental and social toll of nickel extraction. The nickel debate, rather than addressing the plight of affected communities or mitigating environmental destruction, seems geared toward securing political gains in Indonesia’s 2024 presidential election.

Also Read: Transition: Mass Movements NU and Muhammadiyah To Get Cabinet Posts in New Government After Accepting Mining Permits, Tempo

Regardless of whether Tesla relies on Indonesian nickel, mining operations in Sulawesi, Maluku, and Papua continue unabated, with scant regard for the suffering of residents and ongoing environmental degradation.

• ^[1] Tom Lembong Kritik Kondisi Nikel Indonesia! #totalpolitik #tomlembong #nikel #pilpres2024
• ^[2] https://www.visualcapitalist.com/sp/4-benefits-of-lfp-batteries/
• ^[3] https://www.jatam.org/hilirisasi-nikel-untungkan-pebisnis-miskinkan-warga/
• ^[4] https://pemilu.jatam.org/
• ^[5] https://www.jatam.org/dukungan-boy-thohir-cs-ke-prabowo-gibran-pemilu-2024-dikendalikan-bohir/
• ^[6] https://www.gotocompany.com/about-us#board-of-commissioners

This article is based on https://jatam.org/id/lengkap/derita-warga-di-balik-saling-serang-tom-lembong-vs-luhut-bahlil

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