Bridging the gap in corporate social responsibility: Balancing short-term benefits and long-term risks in nickel mining in Central Halmahera, Indonesia

The development of transitional energy towards electric vehicles has surged the global demand for nickel, causing it to be a key component in battery technology. This transition has led to a rapid expansion of nickel mining production, particularly in Indonesia which falls under the world’s largest nickel producers. The industrialization process has swiftly transformed the social and economic landscape of local community. The presence of mining companies that have been exploiting the natural resources in Central Halmahera, raises hope for the local community for reciprocal benefits as a return for the environmental and social impacts they have encountered. This study aims to capture the impact of Corporate Social Responsibility (CSR) policy of PT. Indonesia Weda Bay Industrial Park (IWIP) in Central Halmahera, North Maluku. Drawing upon the CSR using stakeholder theory and concepts of local development, this study presents key findings to the needs of ‘ring one’ villages, such as Lelilef Sawai, Waibuan, and Gemaf, where mining extraction have dramatically impacted the area. This research is supported on qualitative method, fieldwork, interview with local stakeholders, NGOs, and government officials, as well an analysis of the company reports, and websites. This analysis points out the complex interplay between development. While the company’s CSR strategies have contributed to some aspect of local development, there is a need to also proactively addressing broader concerns, such as health and environmental management risks. The implementation of the company’s CSR has been carried out since 2019, however, the CSR efforts have yet to establish a sustainable program. This study highlights the need for a more strategic, robust, and inclusive CSR policies that genuinely benefits the local community and address the complexities of the mining’s socio-environmental impact.