Nickel Downstreaming in Indonesia’s IWIP: Neo-Extractivism Perspective

Abstract

This study investigates the manifestation of neo-extractivism within Indonesia’s nickel downstreaming policy by specifically examining the Weda Bay Industrial Park (IWIP). To provide context, the research analyzes how state-led industrial strategies, often presented as resource nationalism, intersect with the demands of the global energy transition and local socio-ecological conditions. A qualitative single case study design was applied for this researh. Furthermore, the analysis utilizes Svampa’s framework of neo-extractivism, which includes three specific dimensions: the eco-territorial turn, the commodities consensus and developmentalist illusion, and new dependencies. The findings indicate that IWIP represents Indonesia’s ambition to move from a raw material exporter to a strategic processing hub, yet one must acknowledge that this transformation is established through ecological degradation, the dispossession of indigenous communities, and persistent inequality. Moreover, the study shows that rapid economic growth in North Maluku failed to improve household welfare, effectively confirming the presence of a developmentalist illusion. Indonesia’s reliance on Chinese capital, technology, and offtake agreements has also entrenched structural subordination, thereby creating new dependencies. Consequently, the research concludes that IWIP illustrates the inherent contradictions of neo-extractivism, which underscores the necessity for a radical reorientation toward development models that are socially and ecologically just.