Mining company Harita Nickel’s operations in South Halmahera is determined to  drive inclusive economic growth, providing over 22,000 jobs − 45 percent of which go to local residents in North Maluku − and transform previously unvalued nickel ores into high-value materials essential for electric vehicle (EV) batteries.

"Our operation is not just about mining, but to build a future together with the local community," Dindin Makinudin, Community Affair General Manager at Harita Nickel, said in an event on July 4, 2025, citing activities of nickel downstreaming, supporting livelihoods, and aligning business with environmental, social, and governance (ESG) principles.

Located on Obi Island − spanning 2,542 square kilometers and home to 53,113 people − Harita Nickel stands at the upstream and midstream points of the nickel value chain. The company utilizes two main processing technologies: RKEF (Rotary Kiln Electric Furnace) for high-grade saprolite ore and HPAL (High-Pressure Acid Leach) for low-grade limonite ore, producing Mixed Hydroxide Precipitate (MHP), a key precursor to nickel and cobalt sulfate used in EV batteries.

ESG practice

In response to the growing importance of ESG factors in global investment, Harita Nickel has institutionalized ESG not merely as compliance, but as a business model. It implements frameworks, such as the Initiative for Responsible Mining Assurance (IRMA) and International Financial Reporting Standards (IFRS) for sustainability disclosures − achieving 80 percent readiness for Standard 1 and 65 percent for Standard 2.

Dindin emphasized practices of emission control, land and marine conservation, zero-fatality safety standards, respect for human rights, and ethical governance.

Economic transformation

Based on regional GDP data, South Halmahera experienced significant economic acceleration following the start of nickel downstreaming in 2016.

“This shows that when done responsibly, the nickel industry can be a key engine for regional development,” Dindin said.

The company has fostered 729 economic opportunities, including 65 local supplier businesses and 26 farmer groups. Local business revenue now reaches Rp 14 billion monthly. Women-led cooperatives alone generate Rp 5.1 billion per month from processed snack products. Harita has also expanded food supply chains to meet internal demands − such as over 22,000 kilograms of poultry and 53,000 tofu blocks per month − by empowering local farmers and entrepreneurs.

Community development

Harita runs integrated social programs aligned with national regulations (Energy and Mineral Resources (ESDM) Ministerial Decree (Kepmen) No. 1824/2018 and ESDM Ministerial Regulation No. 25 and 26). Initiatives include free meals for schoolchildren, teacher training, health clinics, infrastructure improvements, cultural preservation, and education on environmental responsibility.

The company has also built a modern resettlement called "Desa Sehat Berseri" (Healthy and Prosperous Village) for Kawasi residents, featuring religious facilities, markets, sports centers, a waste processing station (TPST), and educational institutions.

“We measure the social return on investment in every stage,” Dindin cited. “Our planning always begins with baseline studies, and we continuously evaluate education, health, and economic indicators to improve human development outcomes.”

Local integration

Looking ahead, Harita aims to localize more of its supply chain through integrated farming and aquaculture to reduce external dependencies. Dindin cited community-managed coconut processing initiatives now produce coconut oil, fiber products, and activated carbon for internal use in land rehabilitation projects.

In fisheries, Harita supports reef restoration, fish cage farming, and partnerships with marine enterprises to meet the 22,000 kilograms of monthly fish demand.

“There is still much to improve,” Dindin said, “but with collaboration from government, civil society, and the people, we are building a sustainable and equitable future together.”