PT Vale's fifth oil spill in Luwu Timur raises sustainability concerns

  • Published on 23/09/2025 GMT+7

  • Reading time 3 minutes

  • Author: Gusty Da Costa

  • Editor: Imanuddin Razak

Trend Asia's field investigation and documentation of a recent oil spill by PT Vale Indonesia have revealed that this is the fifth such incident since 2009, raising significant doubts about the company’s sustainability practices.

The latest spill, which occurred in late August 2025 in Lioka Village, Towuti District, Luwu Timur, saw the release of more than 90,000 liters of Marine Fuel Oil (MFO) into the environment, spreading over a 10-kilometer stretch through the Koromusilu River, an important water source for local communities, and eventually reaching Lake Towuti.

The spill has devastated at least 82 hectares of rice fields, gardens, ponds, and livestock farms, affecting the livelihoods of local residents.

Trend Asia’s documentation revealed that the spill has caused significant damage to wildlife, including fish and birds. Despite PT Vale’s claims, backed by initial studies from the Disaster Risk Reduction Center (DRRC) of the University of Indonesia, that the pipeline leak was caused by external pressures such as earthquakes, Trend Asia’s analysis of BMKG data has shown that the region has been a hotspot for seismic activity over the past decade, with 404 earthquakes recorded between 2015 and 2025. In 2025 alone, there were 189 recorded earthquakes, and 73 occurred in Lioka Village within the last eight years.

"How could Vale not have considered these easily accessible seismic data when assessing risks decades ago? The repeated oil spills cast serious doubt on Vale’s sustainability claims, which are merely cosmetic," Novita Indri, Energy Campaigner for Trend Asia, said as quoted in a statement on Tuesday, September 23, 2025.

On its official website, PT Vale acknowledged local concerns about the dangers of contamination to fields, rivers, and ponds. However, the company has yet to provide a clear explanation regarding the extent of the oil spill's impact. Even 28 days after the spill, no assessment of the environmental damage, particularly to biodiversity, has been made public.

Trend Asia’s findings, however, included visual evidence of dead wildlife in the affected areas as early as the fourth day after the spill.

Vale's global track record of environmental disasters, including the catastrophic tailings dam collapses in Brazil at Bento Rodrigues in 2015 and Brumadinho in 2019, which resulted in 289 deaths and massive river pollution, raises further concerns about the company’s commitment to sustainability. Additionally, in 2020, investigations revealed that Vale had falsified security reports for at least 10 of its tailings dams.

"PT Vale must provide an honest explanation of the dangers posed by this oil spill to local communities and offer comprehensive compensation. Instead of focusing on image-building campaigns, Vale should seriously work towards eliminating fossil fuels from its industrial operations," Novita Indri said.

As of Tuesday afternoon, PT Vale Indonesia has not responded Indonesia Business Post request for comment.

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