Originally published on Global Voices

The Mekong river stretches across six countries: China, Myanmar, Thailand, Laos, Cambodia, and Vietnam. Image from Flickr. CC BY 4.0

This article was submitted as part of the Global Voices Climate Justice fellowship, which pairs journalists from Sinophone and Global Majority countries to investigate the effects of Chinese development projects abroad. Find more stories here.

Around 10,000 people dressed in white polo shirts gathered near the Mekong River in Prek Takeo Village in Cambodia’s Kandal province on August 5, 2024. A huge stage with yellow and blue decorations floated above the water, with colorful balloons and Cambodia’s flag swaying here and there. At 9:09 am, the sound of bells, gongs, and drums echoed across Cambodia as Prime Minister Hun Manet took the stage and pressed a symbolic button.  

It was the groundbreaking ceremony for the construction of a new mega project called the Funan Techo Canal, which was attended by many high-profile guests from across the world. 

Cambodians were required to celebrate the groundbreaking ceremony with a one-day national holiday. The ceremony was broadcast by every state and private television station in the country and covered by journalists from national and international media alike.  

“The Funan Techo Canal will link the capital Phnom Penh to the deep water port in Preah Sihanouk province… facilitating the country’s trade exchange with the world,” said Hun Manet in his speech at the groundbreaking event.

The canal will span 180 kilometers, starting from the Mekong River’s Preak Takeo tributary in Kandal province, passing through Takeo and Kampot provinces to the coast in Kep province. It will connect Phnom Penh to the Gulf of Thailand and is projected to enhance Cambodia’s industrial, agricultural, logistics, and real estate sectors by directly connecting with international trade routes. 

But after the grand inauguration, the construction of the canal was halted for several months, reportedly due to “funding issues” with China. The Cambodian government denied the allegation, slamming the media reports as “misinformation.”

In April 2025, a deal was made between Cambodia and China Communications Construction Company (CCCC), the parent company of China Road and Bridge Corporation. Structured under a 51–49 ownership model of the Public Partnership Contract agreement, the budget was revised from an estimated USD 1.7 billion to USD 1.16 billion. 

During his remarks, Wang Tongzhou, Chairman of CCCC, emphasized that the Kingdom is an important strategic market in Southeast Asia.  

“More importantly, it marks a significant milestone in deepening cooperation between the two nations,” he said, as quoted by Khmer Times.

Expected to finish in 2028, this project is not without its controversies. Aimed at boosting Cambodia’s economy, there have been some environmental and human rights concerns related to the project, especially for the Mekong Delta, a vital part of people’s livelihoods in other neighboring Southeast Asian countries. 

The Funan Techo Canal route. Image via Wikimedia Commons. License CC BY-SA 3.0.

What is the Funan Techo Canal? 

Initially announced in 2021, the Funan Techo Canal is a major waterway infrastructure that would be 100 meters wide, 5,4 meters deep, and designed to accommodate vessels of up to 3,000 deadweight tons. Once completed, it will strengthen Cambodia’s position as a regional logistics hub and reduce its dependence on Vietnamese ports for trade access. 

This project reflects the country’s aspiration to become a major logistics hub in Southeast Asia. It is expected to reduce shipping costs by 70 percent and is projected to earn USD 88 million annually from transportation by 2050. The canal will be a shortcut to international trade that will stimulate more foreign investment and create jobs.  

The Cambodian government claimed that 1.6 million people living on both sides of the waterways will benefit from the project. Hailed as a “revolutionary engineering achievement,” this canal is expected to boost the agricultural sectors and enhance flood mitigation and water conservation efforts, especially in the dry season, according to Mey Kaylan, a senior adviser to the Supreme National Economic Council of Cambodia.

“It will open up a new horizon for the development of Cambodia,” said Mey to China Daily. 

During the inauguration ceremony, Hun Manet stated that the canal will be built “no matter what the cost” as it brought “national prestige” to the Cambodian people. Yen Samnang, a research fellow at the Phnom Penh-based Asian Vision Institute think tank, shared optimism that this canal will enhance regional connectivity and economic integration. 

 “The project is truly in line with Cambodia’s values of sustainability, innovation, and global cooperation,” he told the Khmer Times.   

Environmental and human rights concerns

While the Cambodian government has insisted the canal is environmentally sustainable, environmentalists are concerned about the future of the Mekong waterway. 

The Mekong River is a vital resource for millions who live on the banks of the river, from China to Myanmar, Thailand, Laos, Cambodia, and Vietnam. It is the world’s largest inland fishery, sustaining at least 40 million people and generating over USD 11 billion annually, according to the World Wildlife Fund. Mekong is also the world’s third most biodiverse river, with at least 1,148 fish species, and an important food zone for the world. 

Vietnam has raised concerns that the Funan Techo Canal would disrupt the ecosystem balance, especially in the Mekong Delta in southern Vietnam. The canal’s high embankments will prevent silt-laden floodwater from flowing downstream to Vietnam, which could cause drought in Vietnam’s agricultural “rice bowl” and Cambodia’s floodplains, according to Brian Eyler, director of the Washington-based Stimson Center’s Southeast Asia Program.  

For Vietnam, this could undermine its agricultural sector, which accounts for 12 percent of its economy. In 2024, Vietnam exported over 9 million tons of rice, generating a value of USD 5.7 billion. This number accounted for 15 percent of global exports, raising global food security concerns, SCMP reported. 

Vietnam accounted for 15 percent of global rice exports. Image from Wikimedia Commons. License CC BY-SA 3.0 

Furthermore, Le Phat Quoi, head of Vietnam’s Institute for Environment and Natural Resources, told Mongabay that digging the canal will disrupt the region’s Holocene soil, “a potential acid sulfate soil” which will oxidize into “actual acid sulfate soil,” producing sulfuric acid. This process could corrode canal infrastructure and release dangerous concentrations of heavy metals into the floodplain, threatening both agriculture and aquatic ecosystems. 

However, Cambodian President Hun Sen debunked these concerns via a post on X, arguing that “this canal has no impact on the flow of the Mekong River, as it does not connect directly to the Mekong but rather to the Bassac River.” 

Locals would also be threatened by the construction of the canal, as many who live along the banks may lose their homes. Dim Mech, a businessman living along the planned canal route since before 2000, told CamboJA News that he has yet to receive any official notice regarding compensation or relocation, even though local authorities have already documented his land, home, and crops.

“I’m afraid to leave. I’ve worked so hard to build this life. If I lose it, I won’t survive,” he said to CamboJA News.   

Strengthening China-Cambodia relations

This canal has also raised questions about the future of Cambodia’s geopolitics. The Chinese ambassador to Cambodia, Wang Wenbin, said this project marks a “new stage” in China-Cambodia cooperation. 

Analysts believe that the Funan Techo Canal could help China to expand its economic and geopolitical influence in Cambodia and in the wider region, but China’s rising dominance would concern the US and Vietnam. 

“Regarding the controversy [with Cambodia] over the canal, environmental protection or other arguments are not substantial reasons,” Zhou Chao, a researcher at Anbound Consulting’s Beijing Research Center, told the South China Morning Post. “Fundamentally, it is the wariness and resistance of the US and Vietnam towards the continuous rise of China’s influence.”

Politically, China has invested heavily in Cambodia to expand its soft power and diplomatic influence. For Cambodia, China is the largest source of its foreign investment, providing an important boost to its infrastructure development and economic growth. While the canal project might increase the risk of government debt, in the short term, it helps to address Cambodia’s unemployment crisis, could boost its economic growth, and expand exports to China. By aligning with China economically, Cambodia also gains geopolitical protection in the region. 

Nguyen Tan Dung, former Prime Minister of Vietnam, and Hun Sen, the President of the Cambodian State. Image from Wikimedia Commons. License CC BY-SA 3.0.

However, this project could have a negative impact on the Cambodia-Vietnam relationship as it will reduce around 10 percent of international trade to and from Cambodia via Vietnamese ports. This could divert substantial trade from Vietnam to the Gulf of Thailand, strengthening China’s economic leverage over Vietnam. China and Vietnam have a fraught history and ongoing territorial disputes.  

While critics believe the canal represents a risk of Cambodia’s overreliance on China, Chinese media commentator Yuan Ye argued that, on the contrary, the Funan Techo Canal is an attempt for Cambodia to even the balance of power in the region. 

Yuan said to Guancha, a Chinese nationalistic media outlet:

与越南不同，柬埔寨并不把中国视为直接的安全威胁，相反，借助中国力量以制衡越南，是柬埔寨历史上的惯常策略。

Unlike Vietnam, Cambodia does not view China as a direct security threat. On the contrary, relying on China’s power to balance Vietnam has been a common strategy in Cambodia's history.

Originally published on Global Voices

Adlunfiqri Sigoro protests in front of Walshin Lihwa Corporation in Taiwan. Image courtesy of Adlunfiqri Segoro. Used with permission.

This article was submitted as part of the Global Voices Climate Justice fellowship, which pairs journalists from Sinophone and Global Majority countries to investigate the effects of Chinese development projects abroad. Find more stories here. 

Indonesian activist Adlunfiqri Sigoro, alongside community residents, workers, Indigenous people, and representatives from other Indonesian environmental organizations, protested in front of Walsin Lihwa Corporation’s (華新麗華股份有限公司) headquarters, a Taiwanese nickel-processing giant, on August 5.

They were protesting Walsin’s nickel mines in Indonesia, which community residents say harm the environment and threaten locals’ livelihoods, culture, and land. They called for improved labor conditions, transparency of sustainability reports, the establishment of human rights and environmental due diligence policies, phasing out coal, and an effective and proactive stakeholder engagement mechanism.  

Taiwanese news outlets covered their protest, highlighting the activists’ journey from Indonesia to Taiwan to protest against the environmental and human rights issues of Walsin Lihwa’s nickel factory. 

Walsin Lihwa Corporation has three companies that operate in the Indonesia Morowali Industrial Park (IMIP) in Central Sulawesi and the Indonesia Weda Bay Industrial Park (IWIP) in North Maluku. Walsin produces nickel pig iron, a key component for electric vehicles, with a capacity that reaches 300,000 tons each year. Walsin sells its production to several Chinese companies, namely, Shanghai Decent Investment, Guangxi CNGR Energy Science and Technology, and Hunan Zoomwe Zhengyuan Advanced Material Trade.

After the protest in Taipei, Adlun and other Indonesian community representatives were invited to an in-person meeting with Walsin’s management. However, as stated in a press release by Indonesia’s Aski Ekologi and Emansipasi Rakyat (AEER) and Taiwan’s Environmental Rights Foundation (ERF), Walsin has failed to provide substantive responses or commitments to activists’ key demands.

Adlunfiqri Sigoro and other activists protesting in front of Walsin Lihwa Corporation in Taiwan. Image courtesy of Adlunfiqri Segoro. Used with permission.

According to Taiwan Public Television Service, Walsin said in a written statement that some of the information provided by the foundation did not match the facts. The company vows to continue to engage with the foundation, emphasizing that it complies with local regulations in Indonesia. The statement did not directly address specific questions from the public regarding workplace accident liability and pollution data.

A Taiwanese legislator and Indonesian workers of Walsin held a press conference later in the month, calling on Taipei to expedite the enactment of corporate human rights and environmental due diligence legislation. During the press conference, worker representatives revealed the harsh workplace conditions that employees face, according to a report by Taiwan’s Central News Agency. A factory accommodating 1,000 people has only one toilet with no water supply. The manufacturing process produces toxic air and coal dust, but workers are only provided ordinary masks without ample protection, and their rest area lacks an air circulation system.

In Indonesia, nickel mining and processing environmental and human rights concerns have been in the spotlight for several years after the government’s ambitious plan to expand industrialization. Known as home to the world’s largest nickel reserve, equivalent to 42 percent of the world’s nickel reserves, these resources are scattered mostly in Sulawesi and North Maluku, in the eastern part of Indonesia.

Save Sagea Coalition (source: Save Sagea Instagram)

However, this industrialization came with high environmental and human rights costs to the community, one of which is in Adlun’s hometown, Sagea, in North Weda, Central Halmahera, North Maluku. Sagea is one of the hotspots for nickel mining and industrialization in Indonesia.  

Ever since the early stage of nickel exploration, Adlun and his collective, Save Sagea, have taken to the streets countless times to fight for environmental justice for the local community affected by nickel mining and industrialization.  

Global Voices talked to Adlun about how his collective fought back against the nickel mining concession and the industrial plant in their village for the last decade. 

Save Sagea: Preserving the environment and ancestors’ sacred areas

In 2014, Adlun, alongside several other local youth, founded Save Sagea, a local collective that aims to protect the village from the extractive industry that could destroy their environment and biodiversity.  

Save Sagea was formed at the initial stage of nickel exploration by PT First Pacific Mining, a Hong Kong-based investment company. The company planned to build the mining concession above the Bokimoruru karst area, while the planned factory site is located between the Sageyan River and Lake Legaelol. This location is very close to residential areas. Adlun explains the importance of this location for the Sagean community:

Saya perlu menekankan bahwa tiga lokasi ini merupakan tempat-tempat keramat untuk masyarakat kami, merupakan destinasi wisata, dan juga  merupakan bagian dari ekosistem karst Halmahera yang membutuhkan perlindungan.

I need to stress that these three locations are sacred locations for our society, prominent tourist attractions, and also part of the karst ecosystem in Halmahera, which deserves protection.

Ecologically, the karst area serves as a water catchment and storage area. Economically, the karst tourism of Bokimoruru Cave and Legaelol Lake has benefited the communities of Sagea and Kiya Villages. If the location transforms into nickel mines, residents will lose food independence, such as farming, processing sago, and fishing. 

Adlun emphasized the importance of bringing the issue closer to the local communities to create a collective understanding of why they have to oppose the project. In Sagea, traditional and spiritual values are still substantial among locals.   

In this case, organizers localized the issue, emphasizing that the planned mine would destroy their sacred Legaelol lake and Bokimoruru cave — exalted locations where the villagers connect with their ancestors. Locals also conduct cultural rituals, such as pilgrimages, to these locations, and many say they couldn’t bear to have them desecrated by mining. Adlun said: 

Isu yang kami bawa adalah tentang menyelamatkan danau dan goa keramat yang sudah diturunkan turun temurun oleh leluhur kami di Sagea. Kami hanya melanjutkan pesan yang disampaikan oleh leluhur kami yang menitipkan tanah ini untuk dijaga kepada kami. 

The issue we are bringing is to save the sacred lake and cave, which have been preserved for generations by the Sagea residents. We are only passing on the message from our ancestors who asked us to protect and maintain this land well.

Residents opposed nickel mining operations in Sagea. Image courtesy of Adlunfiqri Segoro. Used with permission.

Aside from that, Adlun says that local youth from Sagea opposed the idea of opening nickel mining exploration because the company didn’t consult with or involve the local community in planning the exploration processes. The coalition also demanded that the company conduct a transparent environmental impact analysis, which the company failed to fulfill.  

Against this backdrop, the coalition launched several protests to oppose the establishment of the mining concession and the factory. After several demonstrations, Save Sagea’s representatives were invited to the Deputy Regent of Halmahera’s office to discuss the matter. The project currently remains unoperational. 

A Save Sagea flag during the Prophet Muhammad’s birthday celebration in Sagea. Image courtesy of Adlunfiqri Segoro. Used with permission.

Since then, Save Sagea has gained more public attention and publicity as it continues fighting to preserve its environment. 

There’s no exact strategy in campaigning for this, says Adlun. Social media and press publications are important; through their campaign on social media, they expanded their network and received much support overseas. But, protests on the street, lobbying, and community organizing are just as essential to strengthen the movement.

For example, during the Prophet Muhammad’s birthday celebration, a national holiday in Indonesia, residents held a traditional parade, and some of them brought a “Save Sagea” flag to raise awareness against nickel mining, which damages the environment. This is why local youth are a vital part of mobilizing and campaigning. 

Weda Bay Nickel Mining site in Halmahera Island. Image from Wikimedia Commons CC BY 2.0

However, Sagea is still facing a threat from nickel mining and industrialization. There are currently five mining licenses seeking to operate in the Sagea karst ecosystem. One of them is Weda Bay Mining, a joint venture between Tsingshan Holding Group Company Limited (青山控股集团有限公司), a leading stainless steel company based in China, Eramet, a mining and metallurgy company based in France, and PT Antam Tbk, an Indonesian state-owned company.  

Weda Bay Mining is part of the Indonesia Weda Bay Industrial Park (IWIP), which has started mining operations in the upstream area of ​​the Sagea River. Mining activities near the river have polluted the water and turned the river a brownish, muddy color. 

The Save Sagea coalition will continue pushing the government to designate Sagea’s karst ecosystem as a national geopark and request that mining permits of companies around the river be revoked.  Adlun says

Kami hanyalah zona yang dikorbankan untuk kepentingan ekstraktif kapitalis, tapi kami akan terus berjuang untuk menyelamatkan Sagea, tanah kami, dan juga lingkungan di sekitar kami.  

We are just zones sacrificed to capitalist extractive interests, but we will continue to fight to save Sagea, our land, and preserve our environment.

Originally published on Global Voices

PT Vale, a nickel mining company in Indonesia, set up a tree nursery in South Sulawesi to prepare for the reforestation of former mines. Image by Mamansukirman06. CC BY-SA 4.0, via Wikimedia Commons.

This article was submitted as part of the Global Voices Climate Justice fellowship, which pairs journalists from Sinophone and Global Majority countries to investigate the effects of Chinese development projects abroad. Find more stories here.

Southeast Asia is rapidly becoming a key player in the electric car (EV) industry. Other than rapid growth in EV sales and high projected market value, the region has also attracted major investments in battery and component manufacturing, turning it into a crucial hub in the global supply chain. Governments in the region have introduced supportive policies to clear the way for electric cars, to help fulfill their climate goals. However, the EV revolution has also prompted public debates about the complex trade-offs involving environmental, social, and economic consequences. 

EVs have clear positive impacts on the environment, public health, and energy security. Compared to traditional gas vehicles, EVs produce less noise pollution when driving, which is particularly relevant to the populated megacities in the region. Additionally, EVs have zero tailpipe emissions, significantly reducing air pollutants, such as nitrogen oxides, sulfur dioxide and other harmful particulate matter from exhaust that cause smog and respiratory illnesses. 

EVs also do not emit carbon dioxide (CO₂) while driving, and the lifetime carbon emissions of electric cars (including those created during their manufacturing and recycling processes) are nearly four times less than those of gasoline cars. As transportation accounts for 20–25 percent of global CO₂ emissions, the adoption of EVs can significantly reduce carbon footprint and help countries reach their goals on climate change. 

A steady transition to EVs also provides more energy security and increases resilience to fuel supply disruptions, which is highly relevant to Southeast Asia, as many countries in the region heavily depend on imported oil. 

Bangkok witnesses heavy smog on a March day in 2019. By Chainwit., CC BY-SA 4.0, via Wikimedia Commons

China has emerged as the most important partner for Southeast Asia’s EV adoption, as Chinese EV brands have quickly gained dominance in the markets and started to produce cars or auto parts in local plants. For the Chinese carmakers, Southeast Asia is strategically important, given its abundance of natural resources, policy incentives, and massive growth potential in domestic markets. At the same time, Chinese EVs facilitate Southeast Asia’s green transportation transition by offering relatively affordable cars, creating job opportunities in the sector, and integrating the region into the global EV supply chain. 

Zhang Yongwei, Vice Chairman of the China EV100, a Chinese think tank aimed at boosting the development of the EV industry, said:

世界各国都制定了交通转型目标，向绿色清洁的新能源转型迫在眉睫。没有任何一个国家、一个企业在新能源领域能‘包打天下’，国际合作是大势所趋，新能源汽车的研发、制造、使用、服务全生态链都需要开放与合作，因此推动国与国之间政策、标准等方面的协同与统一十分重要。

Countries around the world have set goals for transportation transition, and the shift to green and clean new energy has become an urgent priority. No single country or company can dominate the entire EV sector. International cooperation is the prevailing trend. The entire ecosystem of electric vehicles — from research and development (R&D) and manufacturing to usage and services — requires openness and collaboration. Therefore, advancing coordination and harmonization of policies and standards among nations is of great importance.

A NIO car is displayed at an auto show in Shanghai. Image by JustAnotherCarDesigner. CC BY-SA 4.0 via Wikimedia Commons

Cost of the nickel rush 

While EVs will undoubtedly play a crucial role in decarbonizing transport, there are trade-offs regarding the production process. The extraction of nickel, an essential component of EV batteries, is often at the center of debates and concerns. 

Indonesia’s nickel sector is a prime example. The country is home to the world’s largest nickel reserve, totaling 5.2 billion tons of ore and 57 million tons of metal, equivalent to 42 percent of the world’s nickel reserves. As global demand for nickel ramps up, the International Energy Agency (IEA) predicts that Indonesia will supply almost two-thirds of the world’s metal needs by 2030, but increased mining activities have raised ecological and social concerns within the country.  

In recent years, there have been allegations of human rights and land rights abuses, as well as deforestation and water contamination linked to nickel mining in Indonesia. Footage captured by the environmental organization Global Witness seemingly shows how nickel mining has destroyed forests and polluted the water in the Raja Ampat archipelago, a group of small islands located in West Papua, Indonesia. 

By 2024, mining resulted in 174 ha (roughly 450 acres) of deforestation across the cluster of islands, according to analysis of satellite imagery by environmental NGO Auriga Nusantara. 

Raja Ampat, part of the Coral Triangle that makes up the “Amazon of the Seas,” is known for its untouched natural beauty and has one of the richest coral reefs on Earth. The Indigenous community that lives there is worried that the nickel rush will have devastating impacts on the vulnerable ecosystem, as well as their traditional livelihoods and unique culture. 

Raja Ampat is known for its untouched beaches, colorful coral reefs, and diverse marine life. By Irma Ade, CC BY-SA 4.0 via Wikimedia Commons

“I really, really hope that mining doesn’t come,” said Mary Mambrasar, a local villager told Global Voices. “The ocean, the coral will be destroyed, I can’t imagine how we will live… And the water? It comes from the mountains, and the mountains will be the first to go.”

“If the [nickel] company comes, then these sacred sites will be lost. It will be just memories.” Lindert Mambrasar, a local fisherman, told Global Witness, referring to a beach that is considered a sacred place by the locals.

After public pressure, the Indonesian government revoked licences for four of the five mining companies operating in Raja Ampat this June. However, local campaigners say illegal mining activities persist in small islands across the country.

Another NGO, the Business and Human Rights Resource Center, has highlighted public health and environmental risks in the nickel supply chains in Indonesia and the Philippines. Fishermen find it increasingly difficult to make a living as many of the local fish populations have been reduced due to pollution and habitat destruction. Local residents experience respiratory issues and eye irritation because of air pollution. Industrial wastewater pollutes the villages’ waterways, which they rely on to irrigate crops. 

Complaints about pollution, waste management, and workplace risks have also piled up in the largest nickel-processing center in Southeast Asia, the Indonesia Morowali Industrial Park (IMIP). Labor abuses and work safety scandals have long loomed over the plant, while in the surrounding villages, the old livelihoods are replaced, as polluted water has damaged the fishing industry and forced many young villagers to switch from fishing to mining. 

Lestari, a local elementary school teacher, told local media:

Anak-anak di sini banyak yang tak lagi ingin bertani seperti orang tuanya. Tapi belum semua siap kerja di pabrik. Ada yang putus sekolah karena ingin cepat cari uang

Many children here no longer want to farm like their parents. But not all of them are ready to work in factories. Some have dropped out of school because they want to make money quickly.

Experts note that while foreign investment in the nickel sector creates economic opportunities, the benefits are distributed unevenly, favoring only those with certain qualifications. “The local communities may not benefit from the nickel industry because of a lack of skills,” Bhima Yudhistira, researcher at the Center of Economic and Law Studies in Jakarta, told Asia Democracy Chronicles. 

Battle for the driver’s seat 

IMIP is just one of many Chinese-backed projects in Indonesia’s nickel sector. Chinese firms now control about 75 percent of Indonesia's nickel refining capacity, according to global security NGO C4ADS. 

The dominance of Chinese companies in Indonesia’s nickel industry and the region’s EV market has prompted concerns about supply chain control and industrial overdependence. Some ask whether Indonesia is in the driver’s seat of its own EV revolution, or merely a passenger. 

Picture of Chinese EV leader BYD's first electric car, BYD-001, showcased at the BYD Museum in Shenzhen, China. By iMoD Official, CC BY 3.0, via Wikimedia Commons

Critics warn that though the Southeast Asian country is viewed as a booming EV market and a source of raw materials, it is not reaping the benefits as an equal partner. 

“If there is no technology transfer between the two countries, and Indonesia only receives manufacturing without understanding electric vehicle design, battery technology, and so on, then we will always be a market country, not a strategic partner,” Tauhid Ahmad, a senior economist at the Institute for Development of Economics and Finance, told Indonesian media outlet Kompas. 

As Chinese EV brands dominate the Southeast Asian markets, concerns are growing that they could stifle the region’s own EV industry, which largely remains in its early stage of development. Evvy Kartini, a battery technology expert from Indonesia’s National Battery Research Institute, said:

Kalau semua teknologinya dari luar, kita hanya jadi buruh di rumah sendiri

If all the technology comes from abroad, we will only be laborers at home.

In contrast, some argue that the tech transfer will happen over time. Xu Haidong, Deputy Secretary-General of the China Association of Automobile Manufacturers, tells Chinese state-owned media Xinhua that as China’s well-developed EV ecosystem incorporates Southeast Asia, it will help local automotive industries adopt new technologies at a lower cost, thereby enhancing their competitiveness.

Originally published on Global Voices

BYD vehicles showcased at BYD headquarters in Shenzhen, China. iMoD Official. CC BY 3.0, via Wikimedia Commons

This article was submitted as part of the Global Voices Climate Justice fellowship, which pairs journalists from Sinophone and Global Majority countries to investigate the effects of Chinese development projects abroad. Find more stories here.

Chinese electric vehicles (EVs) have made significant inroads into Southeast Asia in recent years. If you hop into a new electric vehicle in Southeast Asia, chances are it’s a BYD, Xpeng, Chery, Wuling, or another Chinese brand. In Thailand, the largest EV market in Southeast Asia, 85 percent of electric car sales in 2024 were Chinese-made. In Malaysia, Chinese EV maker BYD was the bestselling EV brand in 2024. In Indonesia, Chinese EV imports accounted for two-thirds of the country’s total EV sales last year. 

Southeast Asia is emerging as a powerhouse for EV consumption, fueled by a burgeoning middle class, an appetite for new tech, and a rising desire for sustainable transport. EV sales in Vietnam and Indonesia grew exponentially in 2024, respectively nearly doubling and tripling their sales numbers from the previous year. The EV sales shares in the two countries are now comparable to high-income economies such as Spain or Canada. 

“Public acceptance of EVs is steadily increasing [in Indonesia],” said Muhammad Nur Yuniarto, executive director of the Automotive Control System Center at the Sepuluh Nopember Institute of Technology in Surabaya, Indonesia. “Initially, there were concerns about battery durability and reliability, but these have been dispelled as EVs have proven reliable and safe for daily use,” he told BenarNews, a South and Southeast Asian regional news outlet.

Generally speaking, Chinese EVs enjoy a good reputation in the region and represent a high level of tech innovation. An Indonesian autoshow visitor told CNN Indonesia:

Bagusan mobil-mobil produk China (material). Selain itu, produk China high technology

Chinese-made cars are better (in terms of materials). Furthermore, Chinese products are high-tech.

Analysts say that favorable local policies and relatively affordable prices play an instrumental role in the boom of Chinese EVs in middle- and low-income countries. Last year, across all emerging economies outside of China, Chinese EVs made up 75 percent of the increase in electric car sales. 

When EV demand in Southeast Asia meets Chinese overcapacity 

The stunning growth of Chinese EVs in Southeast Asia is driven by a mix of “push and pull” factors.

In Southeast Asia, many countries have made ambitious pledges to increase the market share of electric vehicles and, therefore, implemented various policies to facilitate EV adoption. For example, in Malaysia, EV owners are exempt from paying road taxes until the end of this year. The government also provides subsidies for charging stations and various incentives for manufacturers. 

In Indonesia, some Chinese automakers have enjoyed an import tax waiver to incentivize foreign car companies to establish local assembly plants. As a result, the sales of Chinese EVs increased by a startling 18-fold in 2024 compared to the previous year.

Bangkok traffic jam during rush hour. By Christopher J. Fynn, CC BY-SA 4.0, via Wikimedia Commons

In congested and polluted megacities in Southeast Asia, such as Jakarta, Bangkok, and Manila, there are traffic restrictions applied to conventional gas cars. To curb congestion and emissions, cars are only allowed on the streets on specific days or times based on their licence plate numbers. However, EVs are currently not subject to such driving restrictions, contributing to higher demand for EVs.

On the other hand, in China, after years of heavy investment and supply chain development, EV companies face market saturation and overcapacity, prompting them to expand abroad. As domestic demand is outpaced by rising supply, Chinese car manufacturers find themselves locked in a volatile price war in China and must look outside the country if they want to keep growing. 

While Europe has been the largest export market for Chinese-made electric cars, the EU’s high import taxes and the reluctance of European consumers to buy Chinese brands have cast a shadow on the automakers’ overseas expansion plans. The value share of Chinese EV exports to Europe has fallen from over 70 percent in 2021 to roughly 40 percent in 2024. Instead, Chinese EV makers are making headway in Latin America and Southeast Asia, where there are fewer regulatory hurdles and soaring demand for EVs.

Industry analysts state that Southeast Asia can be a lucrative market for Chinese EV companies, given the region’s abundance of resources, neutral geopolitical position, close trade relationships with China, and massive growth potential in domestic markets. 

Additionally, fierce competition among Chinese brands and swift technological advancements have driven down battery prices, improving the affordability of Chinese EVs and making them more attractive for price-sensitive consumers in Global South countries. In 2024, in most emerging economies, Chinese EVs were by far the most affordable option. In Thailand, the average price of a Chinese EV was lower than that of a conventional gas car, with the lowest priced EV models starting at only TBH 250,000 (USD 7,668) and going up to TBH 1.2 million (approximately USD 35,000), while the average price of gasoline cars remains around TBH 815,000 (USD 23,600).

From exporting to local manufacturing 

In addition to exporting cars to Southeast Asia, Chinese automakers are also investing in local production and assembly, which will help preempt future trade tariffs and enhance their price competitiveness and brand recognition in the local markets. Currently, overseas plants operated by Chinese manufacturers account for only 5 percent of electric car sales in emerging markets, a share that is expected to increase.

BYD Auto (Thailand) Co., Ltd., manufacturing plant in Rayong, Thailand. iMoD Official. CC BY 3.0, via Wikimedia Commons

BYD is an example of an overseas manufacturing success story. Having established four overseas factories in Thailand, Uzbekistan, Brazil, and Hungary, the Chinese automaker, which surpassed Tesla as global top selling EV brand last year, is investing in a USD 1 billion plant in West Java, Indonesia. 

“Every single progression of our local manufacturing is quite smooth and also on track. We will keep our commitment, which is that by the end of 2025, we will complete the construction work,” according to Eagle Zhao, president director of BYD Indonesia. The automaker is simultaneously building a new factory in Sihanoukville, Cambodia, further enhancing its regional manufacturing capacity. 

Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto commented that BYD’s symbolic investment in the Indonesian factory “can strengthen the era of electric vehicles.”

This mega facility signals the Chinese company's long-term commitment to Indonesia. The plant has a planned annual capacity of 150,000 units, more than three times the country’s total EV sales last year. With this investment, BYD secured a temporary waiver of import duties, further boosting its sales in Indonesia.  

Indonesia is the largest automobile market in Southeast Asia. With its population of 283.5 million and fast-growing middle class, it is considered a “strategic battleground” for Chinese EV companies going overseas, forcing BYD and other Chinese automakers, such as Wuling, Chery, FAW, Neta, Great Wall, and GAC Aion, to compete to invest in the archipelago. 

A car by Chinese automaker Xpeng is displayed in a showroom in Bangkok, Thailand. By Chanokchon, CC BY-SA 4.0, via Wikimedia Commons

However, there are some concerns that the ongoing price war in China could ultimately backfire on manufacturers and consumers both domestically and abroad.

The volatile market and razor-thin margins mean many Chinese EV companies are struggling to stay afloat amid unsustainably low prices and being forced out of business, leaving their consumers in a lurch. Others are expanding abroad too quickly before they have the supply chain capacity for servicing and manufacturing. Industry experts warn that this could hurt the reputation of Chinese EV brands in the long term. Li Yunfei, general manager of brand and public relations at BYD, said at a June 6 industry forum:

如果企业在本土市场发展不顺，强行拓展海外市场可能并非明智之举，甚至可能对中国品牌的整体形象造成潜在损害。

If a company is not doing well in the domestic market, forcibly expanding into overseas markets may not be a wise move and may even cause potential damage to the overall image of Chinese brands.

The government has stepped in to try to curb the ongoing price wars, with the China Association of Automobile Manufacturers (中汽协) releasing an official statement on May 31, titled “关于维护公平竞争秩序 促进行业健康发展的倡议” (Initiative on Maintaining Fair Competition Order and Promoting Healthy Industry Development), urging companies to “strictly abide by the principles of fair competition” (严格遵从公平竞争原则), and not monopolize the market or undercut competitors.

As one official from the China Association of Automobile Manufacturers said to Xinhua, a state-affiliated news outlet:

可以说，“价格战”没有赢家，更没有未来。

It can be said that there are no winners and no future in the ‘price war’.

Emerging local competition

Though Chinese EVs are making headway in Southeast Asia, they are facing challenges not only from renowned international auto giants, such as Toyota and Hyundai, but also from emerging local brands. 

Vietnamese carmaker VinFast is gaining traction in both domestic and international markets, with rising exports to Indonesia, Malaysia, and the US. The company is currently planning to double its production in Vietnam and is building overseas production facilities in India.

VinFast also has a near monopoly on the charging stations in Vietnam, which makes the country a tough market to crack for Chinese auto companies. Cars from some Chinese brands can only charge at limited third-party charging facilities. 

“Additionally, the long-standing anti-China sentiment in Vietnam could pose a significant hurdle for BYD, potentially affecting consumer perception and acceptance,” Abhik Mukherjee, an auto analyst at Counterpoint Research, told Rest of World.

Except in Vietnam, Chinese EV companies currently have a leading position in Southeast Asia. With their affordable models, sizable investment, and political support from the local governments, they are poised to deepen their foothold in this key EV battleground. 

Originally published on Global Voices

Floods hit Hue city, Vietnam, in 2020. Via Wikimedia Commons By Lê Minh Đức CC BY-SA 4.0

This article was submitted as part of the Global Voices Climate Justice fellowship, which pairs journalists from Sinophone and Global Majority countries to investigate the effects of Chinese development projects abroad. Find more stories here.

In March 2025, torrential rains inundated the streets of Jakarta, the capital of Indonesia. The heavy rainfall caused severe deluge in the city and its nearby areas, killing at least nine people and displacing 90,000. It also reminded residents of painful memories from 2020, when intense flooding in the metropolitan city killed at least 60 people. 

Social media was soon flooded with videos of the disaster, the ensuing evacuation missions, and first responders’ mitigation efforts. One such video shows emergency personnel rescuing people in boats and trying to clear flooded roads by shooting the excess water into the river with firetrucks.

@tawabb_

Inalillahi, turut berduka atas musibah Hari ini, Selasa 4 Maret 2025 Banjir di sejumlah Wilayah Jabodetabek .. Kali Ciliwung, Jatinegara, Jakarta Timur

♬ suara asli – Tawabb – tawabb_

Inalillahi, turut berduka atas musibah Hari ini, Selasa 4 Maret 2025 Banjir di sejumlah Wilayah Jabodetabek .. Kali Ciliwung, Jatinegara, Jakarta Timur

To Allah we belong and to Him we return, condolences for the disaster today, Tuesday, March 4, 2025 Floods in a number of areas of Jabodetabek .. Ciliwung River, Jatinegara, East Jakarta

Other major cities in Southeast Asia have also been devastated by severe floods caused by extreme weather. 

Parts of metropolitan Manila, the capital of the Philippines, experienced flooding from phenomenal rainfall at unprecedented intensity this August. According to expert analysis, the downpour in the city was equivalent to about five days of rain, dumped in just one hour. In Ho Chi Minh City, Vietnam, after heavy thunderstorms this September, streets were submerged by over a meter of water, triggering widespread traffic gridlock. Residents had to abandon their vehicles and wade through flooded roads during rush hour.

Extreme weather events linked to climate change are occurring at a higher frequency and intensity in Southeast Asia. This exacerbates urban flooding, a chronic problem in many sprawling megacities in the region due to outdated urban planning, low-lying coastal positions, and oversaturated land. 

Heavy rain caused flash floods in Quezon City, the Philippines, in 2023. via Wikimedia Commons. CC-BY-SA-4.0 

Urban flooding is also common in China, as 641 of the country's 654 largest cities are affected by regular flooding, especially megacities on its eastern and southern coast.

In order to resolve the problem of urban flooding, China incorporated the concept of “sponge cities” (海绵城市) into its national policy in 2013, and pilot projects featuring this concept have subsequently launched in scores of cities across the country.

What is a sponge city?

One of China's most prominent urban architects, Yu Kongjian (俞孔坚), proposed the sponge city method for managing floods. 

Yu uses a sponge as a metaphor for cities’ rainwater storage capacity. While conventional flood water management focuses on draining water away as quickly as possible through engineered drainage infrastructure, such as pipes and water channels, sponge cities emphasize the opposite — absorbing water and slowly releasing it, like a sponge. 

“Floods are not enemies,” Yu explains. “We can make friends with floods. We can make friends with water.”

Tianjin Qiaoyuan Park in Tianjin, China, is one of the early sponge city projects. Image via Wikimedia Commons by Mydogistiaotiaohu CC BY-SA 4.0

As cities expand, natural ground is replaced by impermeable surfaces, such as concrete and asphalt, that prevent water from being absorbed. Yu believes that the destruction of many natural water systems, such as rivers, lakes, and wetlands, due to rapid urbanization, is one of the key reasons why flooding disasters occur so frequently in Chinese megacities today. The sponge city model focuses on restoring natural water systems, enabling the land to absorb rainwater, thereby mitigating flooding disasters and reusing the rainwater locally. In an interview with the Chinese state-funded People's Daily, Yu explained his belief that overreliance on “grey” infrastructure (such as concrete dams and pipelines) can be limiting:

工业化大家相信人类的技术、人类的机械工程、钢筋水泥工程能够征服自然。因为它有科学的模型，它能计算出水流，能计算出运动的轨迹，能计算出河道。越直、越硬、越光，它的过水越快，它的防洪效果越好。就是这种工程机械的，这种机械的工程思维，就是单一目标的思考。

Industrialization has fostered a belief that human technology, mechanical engineering, and reinforced concrete can conquer nature. Because it has scientific models, it can calculate water flow, calculate movement trajectories, calculate river channels. The straighter, harder, and smoother, the faster the water passes, the better the flood control effect. This is the kind of engineering machinery, this kind of mechanical engineering thinking, that is, single-minded thinking.

In 2013, Chinese President Xi Jinping announced his support for sponge cities and made them a top priority for the future.

解决城市缺水问题，必须顺应自然。比如，在提升城市排水系统时要优先考虑把有限的雨水留下来，优先考虑更多利用自然力量排水，建设自然积存、自然渗透、自然净化的'海绵城市'。

To solve the problem of urban water shortages, we must adapt to nature. For example, when improving urban drainage systems, we should prioritize keeping limited rainwater, prioritize using more natural forces for drainage, and build ‘sponge cities’ with natural accumulation, natural infiltration, and natural purification.

Some of the strategies employed to create these so-called sponge cities include green roofs, rainwater storage and infiltration systems, sunken green spaces, permeable pavement, bioretention ponds, wetland revitalization, restoring natural waterflow pathways, and more.

Researchers have found that the sponge city projects in China have significantly improved stormwater runoff control and helped reform unfavorable geographical environments. 

Adaptation in Southeast Asia

Yu believes that his water management concept will be effective in flood-vulnerable countries such as Bangladesh, Malaysia and Indonesia, while some other countries including Singapore, the US and Russia are already benefiting from the implementation of similar concepts. 

In an interview with the Chinese media Sanlian Lifeweek, Yu points out that China and Southeast Asia share the same challenges brought by monsoon climates. 

在季风性气候下，降雨严重不均，一天可能有200毫米的雨降下来，再大的地下蓄水空间，再粗的排水管道和强大的排水泵站，都没办法解决瞬时的排洪排涝问题……最有效的解决方法就是基于自然、适应于自然、借助于自然来解决问题。

Under a monsoon climate, rainfall is extremely uneven. In a single day, as much as 200 millimeters of rain may fall, and no matter how large the underground water storage space, how wide the drainage pipes, or how powerful the pumping stations, the problem of discharging floodwaters instantaneously cannot be solved….the most effective solution is to address problems by being based on nature, adapted to nature, and making use of nature.

Conventional water management approaches, which mainly focus on channeling rainwater out of the city, are unsuitable for cities with monsoon climates, Yu states. 

“These cities fail because they have been colonised by Western culture and copied their infrastructure and urban model,” he says in an interview with the BBC.

Yu and his team have applied the sponge city concept in the bustling urban heart of Bangkok, where they transformed the site of a former tobacco factory into Benjakitti Forest Park. The park reduces the destructive force of stormwater, filters contaminated water and provides a wildlife habitat as well as a public recreational space to residents, according to a press release by Turenspace, an urban design company founded by Yu.  

The project demonstrated success in the summer of 2022, when Bangkok experienced a 10-year rainfall event. Much of the city was flooded, while the park and its vicinity were not.

The design goals of Tianjin Qiaoyuan Park include containing and purifying urban stormwater and improving the saline-alkali soil through natural processes. Image via Wikimedia Commons by Joshua L. CC BY 2.0

Controversies and challenges 

At the same time, sponge cities have faced controversies and skepticism. Though the concept has been piloted in many Chinese cities, it is mostly implemented on a small scale in individual neighborhoods, streets, or areas. As a result, its flood mitigation impacts are often limited to the local level, rather than city- or nationwide. 

In a previous interview, Yu himself acknowledged that scaling up the pilot projects in Chinese cities is challenging, as it demands cross-departmental collaboration, requiring strong political will and extensive administrative coordination.

Some critics also point out that the sponge city design often can’t fully cope with the unprecedented levels of rainfall brought on by the climate crisis. In 2021, when heavy rainfall hit Henan province in China, floods killed 292 people in its capital city, Zhengzhou, which is a major pioneer of the sponge city concept. Many questioned the effectiveness of the sponge city infrastructure after the fatal disaster. 

The floods in 2021 caused great damage to the city of Zhengzhou. Image via Wikimedia Commons  CC BY-SA 4.0

Worse still, under climate change, extreme weather events are becoming more frequent and severe. Some critics argue that design standards are not always fully updated to withstand intensifying precipitation trends under climate change.

Hu Gang, a Chinese urban planning expert explains that the sponge city model can only function during moderate or light rainfall, but not during a recording-breaking rainstorm. To alleviate urban flooding caused by extreme rainfall, Hu says that in addition to continuously building sponge city infracture, establishing a more comprehensive drainage system, emergency shelter and disaster preparedness plans are also key solutions.

From the perspective of Southeast Asia, there are obstacles to implementing the sponge city concept. For example, for flood-prone Jakarta, the high cost of developing sponge city infrastructure is often cited as one of the biggest challenges. Other obstacles include an aging drainage system and a lack of space for new construction or redevelopment in the overcrowded capital.

In 2022, Indonesian officials announced that to absorb rainfall and minimize flood damage, the sponge city concept would be implemented in Indonesia's upcoming capital city, Nusantara, which is currently being constructed in East Kalimantan and will replace Jakarta upon completion. The city is being built from the ground up, and officials are claiming it will be the “world's most sustainable city.” The project is one of the first instances of a country moving its capital due to climate pressures, and has not unfolded without controversy. 

Nusantara will incorporate large open spaces connected to its hydrological system to retain and store rainwater, according to the report. The new capital city will also feature porous road surfaces and green rooftops to reduce direct runoff. However, the construction of the new capital city is currently shadowed by budget cuts, and concerns grow that the development of Nusantara will not be completed anytime soon. 

Originally published on Global Voices

Southeast Asia has become a hotspot for foreign waste dumping. Source: Wikipedia. License: CC BY-SA 4.0.

This article was submitted as part of the Global Voices Climate Justice fellowship, which pairs journalists from Sinophone and Global Majority countries to investigate the effects of Chinese development projects abroad. Find more stories here.

For much of the last 50 years, high-income countries have consumed massive amounts of plastic and trash and given little thought to what would become of it. This was largely because it was out of sight, out of mind, as much of that trash ended up being shipped overseas, first to China, and then recently to Southeast Asia and other Global South countries.

But this model could be coming to an end as some of the top waste-importing countries in Southeast Asia have started to ban foreign waste imports this year. Thailand and Indonesia both announced they would stop importing plastic waste in January 2025, in an effort to combat toxic pollution. Malaysia prohibited the import of plastic scrap on July 1, 2025. Vietnam has announced that a ban on plastic waste imports will go into effect sometime this year. 

In announcing the decision, Indonesia’s Minister of Environment Hanif Faisol Nurrofiq said in a statement:

Sampah kita sudah cukup banyak, sudahlah, ngakal-ngakali kita sudah cukup. Mengkolonisasi kita dalam bentuk mengirim sampah ke Indonesia sudah cukup dengan apapun alasannya.

We already have enough trash, we've had enough of it. Colonizing us by sending trash to Indonesia is enough, whatever the reason.

For the last decade, Southeast Asia countries have grown into a hotspot for foreign waste dumping, with the majority of waste coming from the European Union, Japan, the United States, and the United Kingdom. 

Economists call this model “cold economics.” With lower labor costs and a weaker exchange rate to the dollar in Southeast Asia, it is more affordable for Western countries to export their waste to the region, rather than managing it domestically.

For countries in Southeast Asia, agreeing to import waste means economic incentives. Traditionally, proponents have argued that managing imported waste could create jobs and boost local economies. The global plastic waste management market, valued at around USD 37 billion in 2023, is projected to grow to roughly USD 44 billion by 2027.

However, Southeast Asia only became a dumping ground several years ago; before then, most of the waste ended up in China. 

China: The world’s former largest waste importer 

China started to import foreign waste in the 1980s during its initial stages of rapid industrialization. During that period, the fast-expanding manufacturing and construction sectors had a high demand for plastics, metals, paper, and other raw materials. China then decided to import cheap “foreign garbage” to obtain these raw materials. Since 1992, China has taken nearly half of the world’s plastic waste. 

Li Ganjie, then China’s Minister of Environmental Protection, said on March 17, 2018:

大概20年前，我们整个进口量（固体废物）也就是400万-450万吨，20年间，固体废物进口量增加到4500万吨，增长得还是很快的。

About 20 years ago, our total import volume (solid waste) was only 4 million to 4.5 million tons. In 20 years, the import volume of solid waste increased to 45 million tons, which is a rapid growth.

However, these imports often consist of low-value waste streams, ranging from untreated organic matter and household trash to medical waste, industrial residues and liquids, and even certain types of used electronics or components. 

While some of these materials may offer limited recycling potential, most fall short of environmental safety standards. Their processing can release toxic heavy metals, harmful organic chemicals, or even radioactive substances, resulting in both resource depletion and environmental contamination, which has raised concerns among people regarding ecological and environmental damage. 

A pile of waste in China. Source: Flickr. License: CC BY-NC-SA 2.0

Toxic and hazardous solid waste brought in from abroad creates a shadowy chain of disposal. Incineration releases gases that contaminate the air and endanger human health, while acid leaching and water-washing processes pollute rivers, lakes, and soil. When dumped directly or sent to landfills, the waste further adds to the strain on the environment. Fu Shihe, a professor at the School of Economics of Xiamen University, argued in the Chinese state-funded news outlet, People’s Daily:

如果想减少对环境的污染，就需要政府进行环境管制

To reduce environmental pollution, the government needs to carry out environmental control.

China then started to implement a ban in 2017, restricting the importation of 24 types of solid waste. With the gradual implementation of the ban, China successfully reduced 82 percent of total solid waste imports in 2020 from 2016. In 2021, China decided to prohibit all solid waste imports altogether.

China’s decision led to a surge of imported waste to Southeast Asia and India. According to the statistics of the Southeast Asia Branch of Greenpeace, the Southeast Asian Association (ASEAN) ‘s imports of waste plastics in 2018 increased by 171 percent compared with 2016, and the total amount increased from 837,000 tons to 2,266,000 tons.

What is “waste colonialism”?

The term “waste colonialism” was first introduced in 1989 during the United Nations Environment Program Basel Convention, describing the dumping of waste from higher-income countries into low-income countries. This practice, environmentalists argue, is a form of “environmental racism” and a “historical environmental and social injustice” which not only causes waste pollution, but also climate change. 

From 2017 to 2021, Southeast Asian countries received approximately 17 percent of global plastic waste imports, according to UN reports. Furthermore, between 2021 and 2023, Malaysia imported an average of 1.4 billion kilograms of plastic waste each year, Vietnam received around 1 billion kilograms, and Indonesia received nearly 600 million.

Waste volume in Southeast Asia has been increasing rapidly since 2000, reaching about 150 million tons in 2016 and projected to be more than double that by 2030. 

As a result, Southeast Asian countries now face problems similar to those in China in 2017. The people and environment are suffering from the pollution caused by imported waste, especially because the imports are often poorly sorted and mishandled. 

For plastic waste, many in the region still burn the waste instead of recycling it. When waste is burned, the toxic fumes are released into the air, increasing the rates of respiratory issues like asthma and breathing difficulties, as well as skin conditions, cancers, and other chronic illnesses. Overcapacity in landfills also leads to hazardous chemicals leaching into groundwater and soil, posing other health threats to nearby communities. 

Waste is also polluting bodies of water. Seven of the world’s ten most plastic-polluted rivers are in the Philippines, which accounts for about 36 percent of global river-borne plastic pollution. The Mekong Delta, one of Southeast Asia’s most critical ecosystems, is also threatened by plastic waste and environmental degradation worsened by the importation of waste.  

“Other countries in Southeast Asia are likewise being harmed by foreign plastic waste daily. We sincerely hope that exporting countries will help us put a stop to waste dumping and trafficking,” says Wong Pui Yi, BAN researcher from Kuala Lumpur, to Recycling Today. 

A pile of waste in Bantargebang, Indonesia. Source: Wikimedia Commons. License: CC BY-SA 3.0

How to tackle this problem? 

For years, environmental activists have been calling for stricter regulations to overcome this issue. They have also argued that a global treaty on waste is crucial to reduce plastic production and improve frameworks for waste management and recycling on a global level. At the regional level, an action plan on waste policy in Southeast Asia could strengthen the commitment to tackle this problem. 

To address the waste export issue, the European Union announced that, starting mid-2026, it will ban plastic waste exports to non-OECD countries to safeguard the environment and public health. The OECD is an economic and development organization of 38 mostly high-income nations. 

Investing in better waste management through technology could be part of the solution. Waste to Technology (WTE), which converts non-recyclable waste into energy, has started being constructed in Singapore, Thailand, Malaysia, and Indonesia. To support this, the Global North must be responsible for investing in waste management infrastructure in the Global South, Greenpeace insisted.  

Originally published on Global Voices

Solar panel illustration. Rempang Eco City is projected to be the world’s second-largest glass and solar panel factory. Source: WikiCommons. CC BY-SA 4.0

This article was submitted as part of the Global Voices Climate Justice fellowship, which pairs journalists from Sinophone and Global Majority countries to investigate the effects of Chinese development projects abroad. Find more stories here.

On Rempang Island, part of Indonesia's Riau Islands Province, residents launched a protest on September 7, 2023, to oppose the development of the government's latest mega-project, the Rempang Eco City. Residents from 16 villages in Rempang Island declined to be evicted and blocked authorities from entering villages to stake and measure the land. Clashes occurred after police and military fired tear gas at the villagers, causing many students in a nearby elementary school to faint. At least 40 were arrested, dozens were hurt, and many more were left traumatized.

Rempang Eco City is one of Indonesia’s National Strategic Projects and is envisioned as an engine that will drive Indonesia’s economic growth. The project is being jointly spearheaded by Batam Indonesia Free Zone Authority (BP Batam), local company PT Makmur Elok Graha (MEG), and China's Xinyi International Investment Limited (信义玻璃公司), the world’s largest glass and solar panel maker. 

On September 11, 2023, residents took to the streets again in front of the regional government office, calling on the government to revoke the project. Demonstrations also took place outside the Chinese embassy in Jakarta. 

Despite a series of protests, the development of this economic hub continues.

The government asserted that this project will be economically beneficial and will also push Indonesia’s green energy transition. Converting over 17,000 hectares into an industrial hub, officials claim the project will create around 300,000 jobs and generate USD 26.6 billion in investment by 2080. This project could also support Indonesia’s ambition to raise the share of renewable energy to 34 percent of its electricity mix by 2030.  

However, the development of Rempang Eco City continues to stir controversy, largely because most of the island's 7,500 residents, including Indigenous seafarers who have lived there for generations, would be evicted. Some experts have also expressed that this megaproject development will come at a great cost to the environment.  

Rempang Eco City: the world’s second-largest glass and solar panel factory? 

Initially, the plan to develop Rempang Island was announced in 2004 with the regional government and PT MEG signing an MoU to develop 5,000 hectares of Rempang Island into a tourism hub, aimed at attracting more tourists from neighbouring countries, considering its proximity to Singapore and Malaysia. But no development took place until 2022.  

In July 2023, Indonesia's then-President Joko Widodo (Jokowi) and Chinese President Xi Jinping reached an agreement that Xinyi Glass will invest USD 1.16 billion in Rempang Eco City. The plan for Rempang Eco City shifted after Xinyi Glass entered the conversation.  

No longer envisioned as an ecotourism destination, it’s projected to be the world’s second-largest glass and solar panel manufacturing hub, benefiting from the abundant silica and quartz sand around the island. This hub aims to meet the Southeast Asia market since it’s also tied to a deal with Singapore to export 3.4 gigawatts of solar electricity by around 2030, Mongabay reports. Indonesia's then-Minister of Investment, Bahlil Lahadalia, explained.

Ini (fasilitas di Batam) akan menjadi pabrik terbesar kedua di dunia setelah China. Kalau kita sudah berhasil membangun sistem hilirisasi dari nikel, sekarang mulai kita dorong ke pasir kuarsa. Output produknya hampir 95% untuk ekspor, karena pasarnya adalah luar negeri.

This will be the second-largest factory in the world after China. We've successfully developed a downstream nickel system, and now we're starting to expand to quartz sand. Nearly 95 percent of our output will be for export, as the market is overseas.

Rempang is not Xinyi’s first project; the company has successfully built industrial parks in Malaysia and East Java, Indonesia. Xinyi is known to specialize in three core areas: float glass, automotive glass, and energy-efficient architectural glass. Its business spreads across more than 160 countries and regions worldwide, with an annual revenue of RMB 22.3 billion (over USD 3.1 billion) and total assets exceeding RMB 48 billion (USD 6.6 billion). 

Rempang has abundant silica and quartz sand that will benefit the glass and solar panel factory. Source: WikiCommons. CC BY-SA 4.0

Xinyi Group CEO Lee Yin Yee said in a press statement: 

Sebelumnya Xinyi Group telah berinvestasi di Gresik. Kali ini kami berencana untuk berinvestasi dalam pembangunan industri fotovoltaik atau panel surya di Pulau Rempang dan akan menjadi area industri fotovoltaik komprehensif terbesar di dunia.

Xinyi Group previously invested in Gresik, (East Java, Indonesia). This time, we plan to invest in the development of a photovoltaic or solar panel industry on Rempang Island, which will become the largest comprehensive photovoltaic industrial area in the world.

Before Xinyi, other Chinese companies, such as Thornova Solar, and companies from Japan and Singapore already invested in solar panel production in the Riau Islands province. 

Indonesia is a strategic partner for solar energy, especially on Batam Island. With high solar irradiance, a stable climate, and an integrated port with its proximity to Singapore and Malaysia, Batam Island could develop into a new hotspot for the solar industry. It could serve cross-border energy exports with seaborne access. Greenpeace China said:

毋庸置疑，印尼的可再生能源将是未来的发展热点，而光伏作为成本降速最快的电源，更将成为重点发展领域。

Undoubtedly, renewable energy in Indonesia will be a hotspot for future development, and photovoltaics, as the power source with the fastest cost reduction, will become a key development area.

Environmental risks 

Scenery seen from Tuanku Tambusai Bridge which connects Rempang Island and Galang Island. Image from Wikipedia. CC BY-SA 4.0

Rempang is rich in natural resources; it boasts mangrove forests, colorful reefs, fish-filled waters, lush forests, and community gardens that support the subsistence economy of the local residents.

To help support the construction, the contractors would need to dredge sand from the waters surrounding the island and launch a land reclamation project — both of which are notoriously bad for the coastal ecosystem. The disposal of liquid and hazardous waste from glass factories would also harm aquatic life in rivers or the sea, according to an environmental NGO, the Indonesian Forum for the Environment (Wahana Lingkungan Hidup, WALHI). 

“The presence of the glass factory not only threatens Rempang but also the small islands around it. If this company is particularly active, we predict that it is likely that there will be many mining sites developed on neighbouring islands that threaten local fishers’ fishing areas and the safety of those small islands,” said the head of WALHI Riau, Boy Sembiring, to Al Jazeera. 

In an interview with Kompas, Dorman, a Rempang resident, worried that the construction of this factory would ruin the livelihoods of local fishermen because there would be no more fish to catch.

Furthermore, this mega-project could accelerate ecocide or the destruction of resources and ecosystems due to massive exploitation of the environment and natural resources.

Illustration of fishermen. Most of the residents of Rempang Island are fishermen. Source: Pxhere. CC0 1.0.

Human rights issues and evictions

Since the September 2023 protests, countless families have been forcibly evicted from their lands. Islanders were forced to move to temporary accommodation provided by the government as they construct 350 houses within 500 square meters in Galang Island, Batam, Riau Islands Province. Many who resided in Rempang their whole life are deeply opposed to this.  

“They want to move us to small houses in the city, I don’t want to go,” said Grandma Cuh, the oldest resident in Rempang, to the BBC.

A total of 16 villages are being affected by the evictions, many of which have been there since 1834.

“If the evictions continue, there are thousands of residents who are at risk of being severed from their ancestral history and losing their primary livelihoods from farming, gardening, and fishing that have passed down through generations,” said Ahlul Fadli, a member of the National Solidarity Team of Rempang, to Kompas.

The land conflict in Rempang is not just about local transmigration, but also about history, identity, and structural justice, said Rina Mardiana, Advisor to the Center for Agrarian Studies at IPB University, in an interview with Kompas. Therefore, Rina added, development must not sacrifice the sustainability of natural resources and community sovereignty over their living space. 

Highlighting the intimidation, Amnesty International Indonesia, in a statement, called for the construction of Rempang Eco City to be suspended. Deputy Director of Amnesty International Indonesia, Wirya Adiwena, said: 

Hak-hak masyarakat adat harus dihormati dan dilindungi dari segala bentuk ancaman dan kekerasan, mereka juga harus dilibatkan secara bermakna dalam pembangunan yang dilakukan di tanah atau wilayah mereka.

The rights of Indigenous peoples must be respected and protected from all forms of threats and violence, and they must also be meaningfully involved in developments taking place on their lands or territories.

However, local authorities expressed their optimism that they would receive support from islanders once the house construction was finished. The government also guaranteed that “security matters will be carried out softly” in regard to relocation. Batam’s local authorities, Ariastuty Sirait, to local news site, Bisnis.com: 

 Apabila pembangunan rumah tahap kedua beserta fasilitas pendukung lainnya rampung, kami optimis ini akan mengubah pandangan masyarakat menjadi lebih positif terhadap rencana investasi di kampung mereka.

Once the second phase of housing construction and other supporting facilities are completed, we are optimistic that this will change the community's perspective on investment plans in their village, making them more positive.

But, residents are adamant about their stance. 

“This is my home and this is where I want to die,” said Halimad, one of the residents, to Al Jazeera.

Originally published on Global Voices

A waste dump in Tanjung Priok, Jakarta, Indonesia. via Wikimedia Commons CC BY-SA 2.5

This article was submitted as part of the Global Voices Climate Justice fellowship, which pairs journalists from Sinophone and Global Majority countries to investigate the effects of Chinese development projects abroad. Find more stories here.

Chinese waste-to-energy company Zhejiang Jinneng Electric Power Technology Co., Ltd. (浙能锦江环境控股有限公司) held a groundbreaking ceremony in Palembang, a major city in Sumatra, Indonesia, in September 2024. Amid the crackling of firecrackers and fireworks, the first foundation pile of a waste-to-energy (WTE) plant was driven into the ground.

Last year, the Chinese company signed a power purchase agreement with Indonesia's state-owned electricity company Perusahaan Listrik Negara (PT PLN). Jinneng plans to build a system of incinerators and turbines in Palembang that is designed to process 1,000 tons of solid waste per day. The process captures heat from incinerating waste materials, which drives a turbine to generate electricity. As outlined in the agreement, PLN will purchase the energy generated.

Wiluyo Kusdwiharto, Director of Project Management and New Renewable Energy of PLN, said at the ceremony that the Palembang Project would not only address the serious issue of mounting waste in the city, but also help reduce greenhouse gas emissions and generate “green electricity,” according to Jinneng's press release.

A flooding map of Palemang City, indicating that large portions of the city are at risk of hazardous flooding. Image from Mohammad Farid via the IOP Conf. Ser: Earth and Environmental Science. License CC BY 4.0

During Indonesia's rainy season (roughly October–April each year), Palembang City regularly experiences severe flooding.

Marlina Sylvia, Head of Water Resources Division of the Public Works and Spatial Planning Department of Palembang City, added that this project would help with the flooding problem in Palembang due to piles of garbage that cause clogged drainage systems. It is estimated that around 90 tons of waste are dumped into rivers in a single day in Palembang. 

Sylvia told Kompas, a prominent local newspaper:

 Upaya ini harus dilakukan karena sebagian besar sampah berasal dari rumah tangga

This effort (WTE) is essential because most of the waste comes from households

As one of the industry leaders in China, Jinneng currently runs 27 WTE facilities across the country. The Palembang project will be the company’s first overseas WTE plant. Jinneng states that the project will:

…大力推进中国先进的垃圾焚烧发电技术走出去，为印尼环境保护提供中国经验和智慧.

… promote China’s advanced waste-to-energy technology abroad, and contribute Chinese expertise and wisdom to environmental protection efforts in Indonesia

WTE projects seem to offer a twofold benefit, as they eliminate accumulating waste while generating electricity as a byproduct. Is China’s waste-to-energy technology a solution for the growing waste problem in Indonesia and Southeast Asia? Or is it too good to be true? 

China: From boom to overcapacity 

In the last two decades, the waste-to-energy incineration industry has developed rapidly in China, especially in medium and large cities. According to data from China’s Ministry of Housing and Urban-Rural Development, between 2005 and 2023, the proportion of urban domestic waste treated by incineration rose from 9.8 percent to 82.5 percent, and the number of waste incineration plants grew from merely 67 to 1,010. The country is now a global leader in waste-to-energy technology, particularly for municipal solid waste.

A waste-to-energy facility in Gushi, Henan province, China. Via Wikimedia Commons. CC BY-SA 4.0

While the WTE sector has become part of the solution for China’s waste problem, a new challenge has emerged — overcapacity. 

In an interview with China News Weekly, Pan Gong, a solid waste industry analyst of the Chinese environmental think tank E20 Institute, said.

粗略估算，当前垃圾焚烧厂整体负荷率约为60％.

A rough estimate puts the current load rate of WTE plants (in China) at around 60 percent.

According to Pan, around 2018, China saw a boom in the construction of waste-to-energy incineration plants. By 2022, when these incinerators started to operate, the issue of incineration plants being “underfed” gradually began to emerge.

Due to the overcapacity problem and fierce domestic competition, Chinese waste incineration companies, such as Jinneng, started to look overseas. Southeast Asia, as a region with a high concentration of developing countries, high economic and population growth, significant demand for waste-to-energy incineration projects, and in close proximity to China, has become a key overseas market for Chinese waste-to-energy companies.

Indonesia's waste crisis

Indonesia's size, rapid pace of urban development, and accelerating waste challenge make it a promising destination for WTE investment. Producing over 65 million tons of waste per year and growing, the country faces a significant waste management crisis. In addition, for decades, the archipelago had been importing waste from places such as the EU, Australia, and the US, exacerbating its domestic waste problems.

Starting in the 1990s, China became the world's largest hub for international waste imports. Officials tightened regulations about waste imports in 2011 and stopped this practice altogether at the start of 2018, recognizing the unsustainability, environmental toll, and health impacts on local populations. As a result, many Western countries then turned to lower-income countries in the Global South to solve their waste problems, even as many of these countries had underdeveloped waste management systems. Some activists have termed this practice “waste colonialism.”

By 2022, Indonesia had become the world's third-largest trash importer, bringing in a whopping 262,900 tons of plastic waste in 2024. The practice was officially banned in January 2025, with Minister of Environment Hanif Faisol Nurrofiq noting: “I would like to remind all parties that there will be no more imports of plastic waste from next year. We have had enough, as this country continues to struggle with managing its significant volume of such waste.”

Waste in cities is managed using conventional and unsustainable methods, mainly open dumping, which leads to a significant level of methane emissions, a major contributor to global warming. 

The waste management rate in various regions of Indonesia has only reached around 10 percent, with landfills across the country projected to reach maximum capacity by 2030.

Young Indonesian environmental activists decorate a room with plastic bottle waste collected from a river. Via Wikimedia Commons. CC BY-SA 4.0

The vast amount of unmanaged and untreated waste has polluted the environment, said the country’s Deputy Environment Minister Diaz Hendropriyono. In an interview with Antaranews, he said: “The impact is far-reaching. We have found microplastics in rivers, water sources, placentas, and even breast milk.”

However, the dire situation also presents an opportunity for Indonesia’s waste-to-energy processing sector. Indonesia currently has only two WTE facilities operating in Surabaya, East Java, and Solo, Central Java. The government is aiming to increase the number to 30 by 2029. 

The sector has attracted strong interest from foreign investors, not only from China, but also from Singapore, Japan, and Europe, according to Indonesia’s Coordinating Minister for Food Affairs Zulkifli Hasan in an interview with the Indonesian News Agency: “This is a business that many find attractive because it is both feasible and profitable.” The government has vowed to streamline regulations to clear the path for potential foreign investors. 

Challenges ahead 

While Waste-to-energy technology can turn the waste crisis into renewable energy, it comes with unique challenges from economic, environmental, and social perspectives.

Researchers found that electricity feed-in tariffs and tipping fees at WTE facilities are currently inadequate in Indonesia to make these facilities commercially viable. Furthermore, the waste in Indonesia tends to have high moisture content, which requires pre-processing and increases the overall cost for waste processing. Priyanto Rohmatullah, Director of Environmental Affairs at the Ministry of National Development Planning (Bappenas), explained the challenges Indonesia faces in converting waste to energy at an environmental symposium at Universitas Gadjah Mada.

Plastics should be separated, organics should be separated, and inorganics should also be separated. But what often happens is that everything is mixed, collected, transported, and dumped again. This is why our landfills practice open dumping, leading to overcapacity.

Environmental NGO Indonesian Forum for the Environment (Wahana Lingkungan Hidup, WALHI) expressed similar concerns. Yuliusman, the Executive Director of WALHI South Sumatra, stressed the importance of proper upstream waste management before WTE operations begin. He highlighted that “facilities and infrastructure for household waste collection” must be in place to support the WTE effectively.

WTE plants have been a controversial subject around the world due to concerns about environmental and health impacts, especially surrounding the emissions of polychlorinated dibenzodioxins (PCDDs), dibenzofurans (PCDFs), and other pollutants. For example, in China, the past decade has witnessed several large-scale protests by residents living near WTE facilities, expressing concerns about their potential negative impacts.

Social opposition to WTE incineration is currently limited in Indonesia, as the industry is in an elementary phase, but public concerns will likely increase as the market in Indonesia grows. As waste-to-energy technology has greatly improved in the past decade, there is now a broad scientific consensus that sophisticated and advanced WTE facilities can be a financially viable, safe, and environmentally friendly option for generating electricity. Transparency of environmental and health data will be crucial to addressing public opposition.

Originally published on Global Voices

An Indonesian farmer checking on a durian. Image from YouTube screenshot. Fair use.

This article was submitted as part of the Global Voices Climate Justice fellowship, which pairs journalists from Sinophone and Global Majority countries to investigate the effects of Chinese development projects abroad. Find more stories here.

Indonesia is expected to reach a trade deal later this year to export whole durians to China, where the tropical fruit has gained a huge following. Farmers and investors are expanding cultivation, anticipating this landmark agreement to open a new and lucrative market for Indonesian durians. 

Durian, a spiky and pungent tropical fruit, can be found in many Southeast Asian countries. Its distinctive, pungent smell has led to bans of the fruit in public places in several Asian countries, but its sweet taste has also earned huge popularity across Asia. Nicknamed “king of fruit,” durian is known to be an exceptionally high-value crop. It can sell for anywhere from USD 5 to hundreds of US dollars per kilogram, depending on the variety. 

In China, the demand for durian has skyrocketed in recent years, especially among young consumers. Durian has gone viral on live streaming platforms where customers can select and order the fruit online and have it delivered within 72 hours. China’s obsession with durian spreads far beyond the fruit itself, as its distinctive flavor can now be found in desserts, chicken hot pots, barbecue, burgers, pizza, and more. Durian-themed restaurants have even sprung up in major cities. 

A Vietnamese farmer harvesting durians. Image from YouTube screenshot. Fair use.

In 2024, China imported approximately 1.56 million metric tons of durians with a total value of USD 6.99 billion, hitting a record high. The country takes in 95 percent of global durian exports, mostly from Thailand, Vietnam, and Malaysia. With the anticipated direct durian export to China, Indonesia is presented with an opportunity to catch up to the competition. 

A sweet deal

In Indonesia, durian has long been an integral part of the country’s food culture. With a diverse range of durian species, the country produces around 2 million tons annually — the largest in the world — but most of its durian yield is consumed domestically. 

The Indonesian government has tried to attract Chinese investors in the durian sector. In 2023, the country’s Chief Investment Minister Luhut Binsar Pandjaitan stated that Indonesia would provide 5,000 hectares of land in North Sumatra and Sulawesi Island to potential Chinese durian investors. He did not name the specific locations but suggested one of the potential sites could be in Humbang Hasundutan Regency, an area in North Sumatra rich in forestry and famous for coffee production.

As outlined in this proposal, 70 percent of the yield would be directed toward the Chinese market, while the rest would be for domestic consumption. Pandjaitan also disclosed that the then-Indonesian president Joko Widodo had brought up this durian investment scheme to his Chinese counterpart Xi Jinping during a dinner meeting in Chengdu. 

Though this investment proposal has not materialized, the two countries have continued to explore durian trade. During a state visit to China in 2024 by the newly elected Indonesian President Prabowo Subianto, the two countries agreed to a protocol for coconut exports from Indonesia. 

“We're still working on durians and I don't think we are very far from that,” said Chinese Ambassador to Indonesia Wang Lutong, according to Channel News Asia. “The Chinese consumers love Indonesian food (and) fruits, and we see a lot of market access to China.”

Observers say Indonesia's durian trade deal with China is sweetened by close diplomatic ties between Beijing and Jakarta. The year 2025 marked the 75th anniversary of the establishment of diplomatic relations between China and Indonesia, as well as the 70th anniversary of the Bandung Conference held in Beijing, a milestone celebrated by both governments.

Currently, Indonesia only exports durian paste to China, which is more complicated to produce and less profitable than the fruit itself. Frozen durians are also re-exported to China via Thailand, significantly reducing potential profits for Indonesian growers. The upcoming trade agreement will cut transportation time and expense and establish a direct supply chain to the most lucrative market. 

Durians from Indonesia. Image from YouTube screenshot. Fair use.

If Indonesian durians reach fruit shops in China, “I might first go and try one,” Zhao Yu, a 38-year-old finance professional based in Shanghai, told South China Morning Post. “I would definitely look first at the prices.” Chinese consumers like Zhao are hoping that Indonesian durians would bring down the market price in China, leading to “durian freedom” for fans of the fruit.

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Indonesia’s durian rush

It takes at least five years for durian trees to bear fruit, but they can live up to a hundred years, generating lucrative returns each year. The high economic value of the fruit and China’s recent durian boom have motivated many to invest in cultivation in Indonesia, including investors from China.  

Catur Dian Mirzada, a durian expert and member of Durian Traveler, an initiative by Indonesia’s Ministry of Agriculture to explore local durian diversity, told Global Voices:

Palu (di Sulawesi Tengah) adalah sentral produksi durian terkenal di Indonesia, karena banyak yang menanam Montong di sana, dan banyak investor China yang melirik ke Palu. Saya dengan sudah ada 30-an pergudangan yang investor mau investasi di sana, jadi sekarang saling berlomba-lomba.

Palu (in Central Sulawesi) is currently the best-known durian production hub (in Indonesia), especially for Montong durians, and investors from China are eyeing for it. I’ve heard 30 warehouse investors are lined up. So we’re in a race [with Chinese investors] now.

A Chinese traveler buys durians in Indonesia. Image from a Douyin (China's YouTube equivalent) screenshot. Fair use.

Indonesia’s durian does not have the international fame possessed by competitors from Thailand and Malaysia, but the archipelagic country stretching along the equator has a geographic advantage. Awang Maharijaya, a professor of agriculture at Bogor Agricultural University, told Global Voices.

Indonesia itu mampu menghasilkan durian dengan musim panen yang berbeda-beda di setiap lokasi. Sehingga Indonesia itu bisa dianggap ada durian terus sepanjang tahun gitu.

In Indonesia, durians can be harvested in different seasons depending on the location, so Indonesia can be considered to have durian available all year round.

Durians in Indonesia used to be planted in local residents’ backyards, and large-scale durian plantations only started to spring up around ten years ago, Maharijaya told Global Voices. Direct access to the Chinese market will likely further boost the transition to industrial cultivation. 

However, Maharijaya and Mirzada both think that Indonesia has a long way to go before its durian sector becomes more standardized and regulated, in order to produce high-quality durians and tap into the massive Chinese market. Mirzada told Global Voices:

Tantangannya bukan di kuantitas, kuantitasnya saya yakin cukup. Cuma masalahnya adalah konsistensi dan kualitas.  Masih panjang perjalanannya. Kalau saya belum, 10 tahun juga berkembang juga belum sampai ke sana mungkin. Kita edukasi terus, bagaimana merawat tanamannya, airnya harus dicukupi, dipupuk, disemprot, dan seterusnya.

The challenge is not quantity. We have enough. It’s about consistency and quality. It’s a long journey ahead. I’d say it’ll take about ten years of development. We're still in the education phase — educating [growers] on how to care for the trees, ensuring there’s enough water, proper fertilization, pest control, and so on.

The bitter side of the sweet fruit

When China, the world’s second-largest economy and second-most-populated country, develops a new craving for durian, Southeast Asian countries are mobilized to secure their pieces of the sweet pie. In Thailand, the size of durian orchards has tripled in 12 years. In Vietnam, coffee farmers are switching to growing durian, as some estimate the crop is five times more profitable than coffee.

A man cutting open a durian in a Thai fruit market. Image from YouTube screenshot. Fair use.

China’s durian craze has created a huge economic opportunity for the region, but it has also led to thorny environmental and social problems. In Malaysia, jungles have been razed to make way for durian plantations, reportedly resulting in deforestation and encroachment on Indigenous land. There’s also a risk of harming endangered animals, as the best lands to grow durians are also the natural habitat for some of Malaysia’s most endangered species, such as the Malayan tiger.

In Laos, where industrial durian cultivation has only started in recent years, Chinese investors have swarmed into the landlocked country, as Laos is poised to begin durian exports to China, and the Laos-China railway (a Belt and Road Iniative project) provides fast transport for the easily perishable fruit. Chinese investors have acquired large plots of land to grow durians, and in some cases, they have cleared primary forests to make room for durian trees. He Ruijun, deputy manager of a Chinese company called Jiarun, which has pledged to build the world’s largest durian plantation in southern Laos, said: 

里面就是一片净土，其实我们也挺舍不得的，要把它开发出来。但是我们是想把它弄成经济价值更高、也很好看的一片经济林，让当地的村民和老挝政府能够快速地发展。

It's an untouched land. We were reluctant to develop it. But then I think the ‘economic forest’ can be just as beautiful, and that it can bring economic growth to the villagers and the Lao government.

Mirzada says compared to crops known to cause environmental damage, durian has a smaller ecological footprint.

Semua tanaman apapun yang dibudidayakan, mereka punya resiko lingkungannya, seperti kentang, tomat, cabai, kubis, mereka pun juga punya resiko. Jadi saya bilang masih aman (durian). Karena kita kan menanam pohon juga, menanam pohon berarti bermanfaat bagi lingkungan kan.

Every cultivated crop has environmental risks. But I’d say durian is relatively safe. We’re planting trees, after all, which also benefits the environment.

But other experts warn that durian trees can never fully replace primary forests. “Some aspects of a monoculture plantation appear similar to a forest, but the biodiversity is much lower,” said Miles Kenney-Lazar, a scholar at the University of Melbourne regarding plantations in Southeast Asia. The plantations also risk local villagers’ access to forest food vital to their livelihood, such as mushrooms and bamboo shoots, he told Nikkei Asia.

Prof Maharijaya believes that durian orchards could play a role in protecting the environment if designed and managed scientifically, if, for example, durian trees were planted alongside plants that attract pollinators. 

 Sesuatu kalau yang awalnya lahan liar gitu, kemudian kita monokulturkan itu kan bentuk semua hal punya resiko kan. Misalkan biodiversitasnya berkurang atau yang lain-lain. Tapi begitu kita tanam dengan baik … tidak harus kita bilang hitam putih ya, yang satu rusak, yang satu enggak gitu. Jadi memang kalau dikelola dengan baik tentu ada jalan tengahnya.

If the (plantation) area was previously uncultivated land, and we turn it into a monoculture, of course, that carries risks, such as reduced biodiversity. But if we plant properly… it doesn't have to be black and white — one side destructive, the other not. If managed well, there’s a middle ground.

Originally published on Global Voices

Southeast Asia has been a solar manufacturing hub for Chinese companies. Source: Wikicommons. CC BY-SA 20

In April 2025, the United States Department of Commerce finalized a new tariff of up to 3,521 percent on imports of solar panels from four Southeast Asia countries: Vietnam, Malaysia, Cambodia, and Thailand. This came after the American Alliance for Solar Manufacturing Trade Committee alleged that major Chinese solar panel manufacturers operating in those four countries are exporting panels below production cost, resulting in unfairly cheap goods flooding the US market. They demanded that the US government implement a tariff increase to protect their US operations, which are worth billions of dollars. The final decision on the new tariffs is due in June 2025.    

The US-China solar trade dispute has been ongoing for decades. In 2012, the US Department of Commerce imposed punitive import tariffs of 30 percent or more on Chinese solar firms after US solar companies accused Chinese manufacturers of undercutting prices through unfair subsidies, a move they say forced several domestic firms out of business.  To circumvent this, China shifted its production to Southeast Asia. This transformed Malaysia, Cambodia, Thailand, and Vietnam into China’s solar manufacturing hub.

Those four countries produced more than 40 percent of the solar module manufacturing capacity outside China and contributed roughly 20 percent to global solar exports. According to BloombergNEF, 80 percent of their production was exported to the US in the first half of 2024. In 2023, their exports to the US grew to USD 12 billion. These manufacturing hubs strengthen China’s dominant force in global solar exports, accounting for 80 percent of worldwide shipments in 2023. 

However, with new tariffs around the corner, and fierce competition at home with marginal profit, China sought to sidestep by relocating to other appealing countries that have thus far evaded the tariffs, one of which is Indonesia. The reasons are clear, said Yana Hryshko, director of global solar supply chain research at Wood Mackenzie, to VOA:

 事实上，在所有东南亚国家中，印尼是最佳选择，因为印尼本身就是一个非常有前景的太阳能市场。例如，印尼在海上浮动太阳能方面拥有最大潜力，这些太阳能设施可以安装在靠近海岸的海域上。此外，印尼幅员辽阔，有足够的空间建设其他太阳能项目，如内陆太阳能项目。

Indonesia is the best choice among all Southeast Asian countries because it is a very promising solar energy market. For example, Indonesia has the greatest potential in floating solar at sea, which can be installed in the waters near the coast. In addition, Indonesia is vast and has enough space to build other solar projects, such as inland solar projects.

Illustration of solar panel factories. Source: Pxhere

China’s solar firms boom in Indonesia

The relocation of Chinese manufacturers to Indonesia has been “rapid and significant.” In the last 18 months, at least four China-linked solar projects have started operation in Indonesia and Laos, with two more to come. 

As a potential market in a “strategic location for manufacturing bases” with “low production cost,” several China-based firms, including Thornova Solar (拓纳瓦太阳能), Trina Solar (天合光能股份有限公司), New East Solar (新东方太阳能), and China Lesso Group (中国联塑集团控股有限公司), have announced plans to expand their production capacity in Indonesia.  

In addition to solar firms, the Power Construction Corporation of China (中国电力建设集团有限公司) under the Belt and Road Initiative (BRI, China's series of intercontinental mega-development projects) built Cirata reservoir in West Java, the largest floating photovoltaic power generation project in Indonesia. Furthermore,  in March, China Gezhouba Group Co. (中国葛洲坝集团股份有限公司) signed a contract with the Indonesian government for a 60 MW floating solar panel farm in Saguling, West Java. Pertamina New and Renewable Energy, a state-owned company, has also begun talks to collaborate with a Chinese manufacturer to build a solar factory in Karawang, West Java.

Cirata floating solar farm in West Java, Indonesia. Source: Screenshot from Indonesia’s Ministry of Energy and Mineral Resources YouTube channel.

In 2024 alone, 22 Chinese solar energy firms invested in 30 projects in 18 countries, including two projects in Indonesia, according to Guang Fu Men, a media group focusing on China's solar industry.

Despite the investment boom, Chinese solar energy companies face various challenges in Indonesia. Chinese firms have limited access to international financial institutions and foreign banks, said Gu Xincen, director of international environmental organization Greenpeace’s climate and energy program, in an interview with Global Voices.

 中国企业的一些国际竞争对手则利用其低成本和长贷款期的融资优势，在项目竞标时报出很低的价格。中资企业应该借鉴国际同行的经验，充分利用境外国际金融机构、外资银行的资金以加快发展。

Some international competitors of Chinese companies use their low-cost and long-term financing advantages to bid very low prices in project bidding. Chinese companies should learn from the experience of their international counterparts and make full use of funds from overseas international financial institutions and foreign banks to accelerate development.

Indonesia’s renewable energy sector 

As a major coal-producing country, Indonesia still relies heavily on coal as its primary electricity source. In November 2024, Indonesia’s president Prabowo Subianto stated that he wants Indonesia to retire from utilizing coal and fossil fuels in the next 15 years. He aimed to build 75 GW of renewable energy by 2040. Prabowo said:

Kami memiliki sumber energi terbarukan lainnya dan itulah sebabnya kami sangat optimistis bahwa kami dapat mencapai nol emisi sebelum 2050.

We have other renewable energy sources, and that is why we are very optimistic that we can achieve zero emissions before 2050.

Pollution in Jakarta, Indonesia. Image from Wikipedia CC BY SA 3.0

Coal-fired power plants come with high health risks. Research from the Centre for Research on Energy and Clean Air (CREA) found that pollution from the coal-fired power plant Suralaya in Banten causes at least 1,470 deaths each year and has caused health losses of up to IDR 14.2 trillion (over USD 871 million). A resident living around the power plant told the BBC that his child was suffering from lung disease due to pollution. This power plant is also one of the main causes of air pollution in Jakarta and its surrounding districts. 

​​This situation makes the transition to renewable energy more urgent. Shifting to solar panels could bring a healthier and improved quality of life while also reducing greenhouse gas emissions and dependence on fossil fuels.

In recent years, the Indonesian government has tried to lure more investments in renewable energy, including solar panels.  However, Indonesia’s renewable energy sector investment has been stagnant for the past seven years, with only USD 1.5 billion in investment in 2023. China, as Indonesia’s second-largest foreign investor, has only a quarter of its investment targeted at the energy sector. Between 2006 and 2022, only 14 percent of China’s energy investments were in renewable energy, while the rest focused on fossil fuels. In 2023, only 13.1 percent of energy produced in Indonesia came from clean sources, below the state's 17.1 percent goal. An expert called Indonesia’s “lack of progress” in its commitment to shift to renewables is concerning. 

Mutya Yustika, an IEEFA energy finance specialist, told Dialogue Earth that Indonesia is facing several structural challenges to increasing renewable energy investment. First is a government-mandatory partnership scheme that requires private companies to collaborate with PLN (Indonesia's state-owned electricity company). Also, low solar tariffs at just nine cents per kilowatt-hour limit the financial appeal for investors, while lengthy, non-transparent procurement processes add delays.

Indonesia still relies heavily on coal for electricity. Source: Pxhere

Will China’s investment accelerate Indonesia’s green transition? 

As a tropical country, Indonesia has immense solar potential, namely 3.294 GW. But, thus far, it only has 140 MW of rooftop solar installations, placing Indonesia eighth among other Southeast Asian countries in the utilization of large-scale solar, according to Global Energy Monitor.

The Indonesian government has set an ambitious target: 3.61 GW of rooftop solar by 2025, 26.65 GW of floating solar, and a 4.68 GW large-scale solar power plant by 2030. Indonesia's National Electricity Plan 2024–2060 projects a significant surge in domestic solar demand over the coming decades, but experts say local manufacturing capabilities must be increased to produce billions of solar panels.

Domestic demand has indeed increased in the last five years, said Erlangga Bayu from Indonesia’s Rooftop Solar Power Installers Association (Perkumpulan Pemasang PLTS Atap Indonesia), to Global Voice. Statistically, there has been a 160 percent surge in solar panel installation demand from 2020 to 2024. 

However, for many customers, solar panels are still too expensive. Lani Diana, 30, has been considering installing a solar panel in her home in Tangerang Selatan, Banten. She kept doubting due to the high price and its significant impact on the environment. 

“Solar panels are not popular yet. I’ve been thinking about its environmental benefit, whether it’s significant or not, but it’s still expensive,” said Lani to Global Voices. 

Here, Chinese investment could play a significant role in fuelling domestic solar equipment and infrastructure. Erlangga said that Chinese solar firms could enhance the domestic market because of their advanced technologies that captivate capital and create employment. 

“With solar panels made in Indonesia, the price will also be cheaper logistically, compared to importing from China. So, when there is something cheap, the multiplier effect is that demand will also be greater,” said Erlangga to Global Voices. 

Yang Muyi, a senior energy analyst at global energy think-tank Ember, told Dialogue Earth that he is optimistic that China’s new solar firms could elevate Indonesia’s green transition ambition. As a global dominant player with a 90 percent share in key parts of the solar supply chain, China offers strategic advantages for Indonesia’s renewable energy growth. Its advanced technologies could support Indonesia’s ambition to produce large-scale solar power generation facilities. 

However, experts also emphasised the need to develop local manufacturing industries because China might not bring the most advanced technologies to Indonesia. It’s also possible — and even likely — that in the future, the US will impose a new tariff on Indonesia’s solar industry.

There are also some environmental risks to account for, especially when industry requires a massive amount of land for large-scale solar production. Head of campaign from Wahana Lingkungan Hidup Indonesia (Forum for the Environment), Fanny Tri Jambore, told Tempo, one of Indonesia’s largest independent news sites, that problems will occur if the factory displaces ecologically important ecosystems, such as protected animal habitats or air catchment areas.

Originally published on Global Voices

A YouTube screenshot from the Indonesia Morowali Industrial Park‘s official promotional video. Fair use.

This article was submitted as part of the Global Voices Climate Justice fellowship, which pairs journalists from Sinophone and Global Majority countries to investigate the effects of Chinese development projects abroad. Find more stories here.

In October 2024, a sudden explosion rocked a steel factory at Morowali in Indonesia’s Central Sulawesi province. Following the explosion, thick smoke rapidly engulfed the factory located in the Indonesia Morowali Industrial Park (IMIP), one of the world’s largest nickel processing and stainless steel production centers. Fire erupted from the factory’s upper structure, and workers tried to contain the blaze by directing high-pressure water hoses there. A crane operator called Laode Gunawan was trapped in the fire and later died from the explosion, while another worker suffered a minor injury.

The steel plant is owned by Chinese metal conglomerate Tsingshan Holding Group (青山控股集团有限公司), which is also IMIP's largest investor. 

In 2013, Tsingshan entered a joint venture with Indonesia-based mining giants PT Bintang Delapan Investment and PT Sulawesi Mining Investment to build IMIP. Tsingshan was in charge of building infrastructure and production facilities, while the Indonesian partners dealt with government relations and the management of Indonesian workers. 

Today, the mega industrial park sprawls across 4,000 hectares and hosts 50 tenants, mostly subsidiaries of Tsingshan. The park also has its own airport, marine port, high-end hotel, and dorms for workers. Designated as a “national strategic project,” the industrial park employs more than 84,000 Indonesian and Chinese workers. 

But this rapid development has come with environmental and human costs. On top of environmental concerns such as deforestation, pollution, and waste management, labor abuses and work safety scandals have long loomed over the project. 

After the fatal incident in October 2024, the Chairman of the Morowali Industrial Workers Union (SPIM-KPBI), Komang Jordi, condemned Tsingshan for being negligent and indifferent to the safety of workers:

 Kejadian berulang, selalu menjadikan buruh sebagai tumbal 

Accidents keep recurring and workers are always the victims.

Widespread safety loopholes

In 2023, three Chinese workers at IMIP filed a complaint to Indonesia’s human rights commission due to a lack of proper safety protocols and equipment, overwork, and pay cuts. But their plea didn’t manage to prevent the industry park’s worst accident in history. Just months later, in December 2023, an explosion at a nickel plant of a Tsingshan subsidiary at IMIP resulted in 21 deaths and 46 injuries, marking a gloomy milestone as the park’s most fatal accident. Among the 21 fatalities, eight were Chinese workers. Two Chinese supervisors were later charged with neglecting safety protocols. 

Zhao Jingtian, a Chinese worker, witnessed the catastrophe during his shift. He told Chinese magazine Lifeweek that he remembered “there was a lot of smoke” (烟冒得很厉害) and that some workers had to jump down from a high place to escape. Another Chinese worker Wang Zizhuang who also witnessed the incident said:

一出事，上面温度太高，急得不行。我这里的炉子每一层都能逃跑，他们应该是跑不了才选择跳下的。

When the incident happened, the temperatures upstairs became unbearably high, and panic set in. Every level of the furnace has emergency exits, but they probably couldn't run away — that's why they had to jump.

In 2024, Financial Times interviewed more than two dozen workers from various companies at IMIP who alleged systematic loose safety practices, insufficient protective gear and equipment, and poor communication between Indonesian and Chinese workers, which led to a high-risk working environment plagued by frequent accidents. “Production first, safety later,” a worker at Indonesia Tsingshan Stainless Steel told FT. Foreign Policy cited multiple sources who alleged that nonfatal accidents, which rarely generate news headlines, are an almost daily occurrence in the industrial park.

A worker at a steel smelting factory. Image from PXhere. CC0 Public Domain. Fair use

A recent survey conducted by the Mining and Energy Federation of the Confederation of All Indonesian Trade Unions shows that long, grueling working hours and weak safety protocols contribute to the high number of workplace accidents at IMIP. The average working hours of employees there are 56 hours per week or 225 hours per month, according to the survey.

Language barriers have also contributed to workplace risks to some degree. According to a Lifeweek report, Chinese workers with experience in the metal industry are usually paired up with less-experienced Indonesian colleagues. A smelter team at IMIP typically contains three Chinese workers and five to ten Indonesian workers. In order to facilitate communication, each team has at least one translator. But that is still insufficient, according to Hasrih Sonna, an Indonesian union leader at IMIP, who told the Chinese magazine:

并不是每个人都能配一个翻译，所以有时翻译人员不够，交流起来就会有困难。处理紧急情况时，情况就变得复杂.

Not everyone can be assigned an interpreter, so when translation support falls short, communication becomes difficult. In emergency situations, this quickly escalates into a critical complication.

After the deadly accident in December 2024, around 300 workers protested at IMIP to demand safer working conditions. One of the demands from the protestors was that Chinese workers should be required to learn Indonesian.

Environmental NGO Indonesian Forum for the Environment (Wahana Lingkungan Hidup Indonesia) stated in a press release that the repeated work accidents at Tsingshan-affiliated companies showed the “weak oversight” of the Indonesian government, as there were “no signs of improvement at all” by this Chinese-backed company. 

Former Indonesian President Joko Widodo (Jokowi) touring the PT Virtue Dragon Nickel Industrial Park in December 2021. Image from YouTube screenshot of Secretariat Presiden. Fair use.

The Chinese government has stayed largely quiet on the alleged systematic workplace hazards at Chinese-backed nickel and steel plants in Indonesia. After the fatal explosion at IMIP in December 2023, Mao Ning, a spokeswoman for China’s Ministry of Foreign Affairs, expressed condolences for the victims. She added that the Chinese Embassy in Indonesia was giving guidance to the company concerning follow-up arrangements.

Human costs behind Indonesia’s nickel boom

In just a decade, Indonesia has grown from a small player to a dominating force in the global nickel sector. It is currently the world’s largest producer of nickel, accounting for 1.8 million tons, or 51 percent of the global output. 

Raw nickel ore. Image from YouTube screenshot. Fair use.

The country’s nickel boom is driven by an export ban on raw nickel ore and large investments from Chinese companies that have mastered the refining technique and are hungry for nickel to power China’s fast-growing electric vehicle (EV) manufacturing industry. However, Indonesia’s rising status in the global nickel supply chain has laid bare the impacts on the most vulnerable in the production process — workers on the ground.

Non-profit organization China Labor Watch documented 77 deaths and 120 injuries at multiple Chinese-backed nickel plants in Indonesia, including IMIP, from 2016 to 2024. China Labor Watch also found that Chinese workers working in Indonesia’s nickel production sites are subject to employment malpractices such as passport confiscation, withheld payments, and restriction of movement. 

Chinese workers reportedly account for about 13 percent of the total workforce at IMIP. They live in dormitories at the industrial park and are forbidden from roaming outside the industrial area freely, making them feel isolated. A Chinese worker at IMIP wrote in an online blog:

我们工作的区域是全封闭的 “物离乡贵，人离乡贱”，曾经对我来说仅仅是个俗语，现在却是我在印尼青山工业园区工作的真切感受。

Our work area is completely enclosed.‘The value of goods increases when they leave their origins, while the value of a person decreases when they leave their homelands.’ This was once just a saying to me, but now it has become my true reality while working at IMIP.

Many Chinese workers at IMIP had worked in the steel industry back home. As the steel sector and China’s economy as a whole have been facing a downturn, workers are increasingly looking toward Indonesia’s nickel sector for job opportunities. 

On the other hand, many young Indonesian workers have migrated for employment from Sulawesi and other Indonesian islands to Bahodopi, the industrial center of Morowali. They struggle to find housing outside the industrial area, as the dormitories are reserved for Chinese workers, and there is a housing shortage due to the recent population boom. 

In 2017, Bahodopi had just 7,517 residents, but by 2022, that number had surged to around 50,000 as newcomers migrated for job opportunities. While essential infrastructure in the town struggles to keep pace, the worker influx has led to a rise in overcrowded and makeshift boarding houses. Reports indicate that these temporary housing structures for Indonesian workers are often made out of easily accessible materials such as wood, concrete, and even shipping containers. With the warm, tropical climate in Sulawesi, workers staying in these houses often have to struggle with sweltering heat, poor ventilation, and water leaks. Many of the housing structures sit near the smelter smokestacks and coal-fired power plants, and the air pollution has led to lung diseases among residents in Bahodopi. 

Experts warn that the growing demand for nickel, driven by the energy transition, will continue to incentivize nickel corporations to increase productivity, which may lead to more labor abuses, workplace hazards, and health issues for workers unless regulations and worker protections are implemented.

In February 2025, a workplace accident claimed yet another life at IMIP. A worker died after a 150-kg object crushed his head at a nickel smelter. Merely hours after the deadly incident, the plant’s production resumed. It was back to business as usual. 

Originally published on Global Voices

A nickel mining site in Indonesia. Screenshot from CNBC YouTube video. Fair use.

This article was submitted as part of the Global Voices Climate Justice Fellowship, which pairs journalists from Sinophone and Global Majority countries to investigate the effects of Chinese development projects abroad.

Joko, 49, paddled his canoe across the murky seawater to his home in Kurisa village, a sleepy fishing town in Central Sulawesi, Indonesia. After floating for eight hours in the Banda Sea, armed with bait and four liters of diesel priced at IDR 100,000 (USD 6), he was hoping to bring back some catch worth at least twice the price of his gas. He handed his fish over to his wife, who deftly placed them into a dark green basin: a few red snappers and skipjack tuna weighing only two kilograms. Just enough to keep a family of five fed for a few days. 

Joko is one of the few fishermen left in Kurisa, home of the Indigenous  Bajau community. Years ago, crystal-clear water surrounded Kurisa with flashy coral reefs and schools of fish. Now, the water has turned opaque and polluted, with no fish to catch. The quality of the seawater has decreased as nickel mines and factories have been erected, polluting the surrounding ecosystem and destroying local livelihoods. Joko said:

In the past, we only needed to spread a net under our house, wait an hour, and we got 10 kilos. Now, we are grateful to be able to bring home five kilos of fish after sailing miles away for hours.

Joko and tens of thousands of people in Bahodopi saw their lives dramatically change after the boost of nickel production in their homeland. 

Indonesia is home to the world’s largest nickel reserve, totaling 5.2 billion tons of ore and 57 million tons of metal, equivalent to 42 percent of the world’s nickel reserves. These resources are scattered mostly in Sulawesi and Maluku, in the eastern part of Indonesia. One of the richest mines is located in Joko’s hometown, Bahodopi district in Sulawesi.  

A map of Indonesia. Screenshot from BBC's Youtube video. Fair use.

The rising demand for nickel

Nickel mining in Sulawesi began in the early 2000s, but it took off in the last decade after a surge in the global demand for nickel, a critical component of electric vehicle (EV) batteries. The worldwide transition to EVs is fueled by the pressing demand for eco-friendly transportation and a decreased reliance on fossil fuels. Capitalizing on its vast nickel reserves, Indonesia set its sights on becoming a major player in the global market by 2027. 

In 2013, Indonesia-based mining conglomerates PT Bintang Delapan Investment and PT Sulawesi Mining Investment joined forces with a Chinese mining company called  Tsingshan Holding Group Company Limited (青山控股集团有限公司) to build the largest nickel-processing center in Southeast Asia, the Indonesia Morowali Industrial Park (IMIP). The project received blessings from political leaders in both countries. In October of that year, Chinese President Xi Jinping and then-Indonesian President Susilo Bambang Yudhoyono oversaw the signing of a cooperation agreement for the industrial park. 

Chinese President Xi Jinping and then-Indonesian President Susilo Bambang Yudhoyono oversaw the signing of several business agreements in October 2013. Source: press release from the Embassy of the People’s Republic of China in Indonesia. Free to use.

Since then, China has had a significant influence on Indonesia's nickel industry. The IMIP has become one of the key projects of China's Belt and Road Initiative (BRI), its international connectivity plan involving development and infrastructure projects in Global Majority countries.

In discussing Indonesia's role in the BRI, Chinese state-owned media People’s Daily claimed that Indonesia still lacked the infrastructure and human resources to manage its abundant reserves of nickel ore. 

印尼红土镍矿储量和产量丰富，但基础设施薄弱、工艺落后、人才不足等因素制约了当地镍矿加工业发展. 青山莫罗瓦利园区负责人章凡表示，以不锈钢生产为主业的中国青山控股集团2009年进入印尼。2013年10月，莫罗瓦利园区签约开建。园区一边搞基建，一边将产业链优势互补的中国镍铁冶炼企业吸引入园，共同投资，共担风险，抱团发展.

Indonesia has abundant reserves and output of laterite nickel ore. Still, factors such as weak infrastructure, backward technology, and insufficient talent have restricted the development of the local nickel ore processing industry. Zhang Fan, head of the Morowali Industrial Park of Tsingshan, said that China's Tsingshan Holding Group mainly produces stainless steel entered Indonesia in 2009. In October 2013, the Morowali Industrial Park was signed and started construction.

The price of development

Lapola, 36, a fisherman from Tapunggaeya village in North Konawe, Southeast Sulawesi, is dealing with a similar problem to Joko’s. The seawater around his village has now turned brown, depleting the fish in the bay. With no income from fishing, Lapola decided to work for the mine. Polluted water has forced many of the villages’ young people to switch from fishing to mining. Lapola told Global Voices in an interview:

Young people have migrated to work in the nickel mines or factories. Now, only the elderly stay because they can't work in the mines. Sometimes, they go to the sea, but it's futile.

Polluted waters in Sulawesi, Indonesia, are leaving many fishing communities with no ability to make a living. Screenshot from BBC YouTube video. Fair use.

Katsaing, Chairman of the Prosperous Indonesian Workers Union, stated that many workers have been complaining about poor work conditions: lack of safety measures, long hours of work, unfair work agreements, and low salaries. Katsaing mentioned that many work agreements only last for three months, leaving workers, who are mostly only high school graduates, in precarious positions

Most who can’t meet the factory requirements still work in agriculture and fisheries. Some have opened small businesses: parking lots, street stalls, and repair shops have sprung up to cater to the growing community. However, their living conditions are not much better. 

Ani, a young mother of two from Fatufia village, suffered because the dust and air pollution made her second child sick with acute respiratory problems that forced her to regularly visit health facilities for almost two years. Rest of the World reported that, according to the community health center of Bahodopi, since 2018, upper respiratory infections have been the most prevalent disease in the district, totaling nearly 7,000 cases. Health workers attribute this to dust from the industrial complex.

Over the last decade, China has invested over USD 65 billion in Indonesia’s nickel industry. An official statement from the Indonesian government shows that China controls 90 percent of the nickel mines and smelters. This situation leaves Indonesia in a challenging position to escape from China’s control over its nickel reserves, particularly as the government aims to attract more investors from the US and Europe. 

Environmental concerns

Environmental issues are still unresolved in Morowali. Aside from the damage caused by the mining itself, IMIP’s smelters are powered by a coal-fired power plant that creates significant carbon emissions. According to the Indonesian Ministry of Energy and Mineral Resources, each 1 GW coal-fired power plant produces 5 million tons of CO2. Residents have also long been complaining about water and air pollution, health issues, and deforestation in their community. 

Once lush and green, today, the hills in Morowali are mostly giant brown mounds because of mining activities. When rain falls, the soil from the hills pollutes the waterways of rice fields and rivers and turns the water an orange-brownish color. Hot water discharge from the Steam Power Plant turbine that supplies electricity to industrial areas streams directly into the sea, raising water temperatures, damaging coral, and driving fish out of the bay.

Aerial footage of the effects of nickel mining. Screenshot from BBC YouTube video. Fair use.

The smoke released from smelter furnaces every six hours turns the sky gray and showers people with back dust, causing people’s clay roofs to rot and dirtying people’s floors and kitchens. 

A report by Rosa-Luxemburg-Stiftung (RLS), a German policy lobby group, stated that nickel-processing plants at IMIP release pollutants such as sulfur dioxide, nitrogen oxides, and coal ash — all of which pose serious health risks when inhaled. Inhabitants suffer from respiratory problems because of the dust and itchy skin caused by polluted water. Worse, many can’t afford to access health facilities. 

After a decade of operating, IMIP is now home to more than 50 smelters and around 84,000 workers, including 10 percent from China. Spanning ​​more than 4,000 hectares, the complex features its own airport, seaport, high-end hotels, staff dormitories, and other essential facilities. IMIP produces a total of 4.76 million tons of Nickel Pig Iron (NPI), with the majority exported to China.

Its iron grip over nickel resources helped China dominate the global EV manufacturing industry and isn't poised to loosen any time soon.