Asia Campaign

Harita Group

Fossil fuel powered nickel exacerbates global climate crisis

Last updated: April 2025

Can EVs be truly green if their nickel is processed with fossil fuels?

The global energy transition is driving the surging demand for electric vehicles (EVs) as a way to reduce reliance on fossil fuels and cut carbon emissions. However, while nickel is essential for EV batteries, its production can carry a heavy climate cost when nickel smelters are powered by new fossil fuel plants, particularly coal. According to the IEA NZE 2050 Scenario, to have a chance of limiting global warming to 1.5°C, no new coal power plants should have been approved since 2021

If the shift to clean energy is to be truly sustainable, nickel processing must align with global climate goals rather than exacerbate emissions. Banks, investors, and EV manufacturers have a responsibility to scrutinise the carbon footprint of their supply chains and ensure that the push for EVs does not come at the cost of worsening climate change.

Take Action

Tell Harita’s lenders that they must rule out financing Harita if it continues building new fossil fuel power plants for its nickel smelters.

Name(Required)

First Last

Email(Required)

Country

Subject (you can edit this)

Your message to OCBC Bank, UOB, Bank Mandiri, DBS, Maybank, Indonesia Eximbank, BNP Paribas, KEB Hana Indonesia, CIMB, BNI, BCA, and China Eximbank

I am writing to express my concerns regarding your support for Harita Group, a major player in Indonesia's nickel downstream industry. The company operates an extensive value chain on Obi Island, Indonesia, and remains heavily reliant on coal-fired power plants for its nickel operations. I understand that your bank has previously provided financial support to Harita Group.[1]

Harita’s energy needs on Obi Island are met by captive coal-fired power plants supplying electricity to its smelters and other facilities. Your continued support for this company raises concerns about your commitment to managing climate risk and upholding sustainability goals.

While Harita has announced plans to commission a 300MW solar panel facility by 2025, its reliance on coal power remains predominant. Current facilities include 890 MW of coal captive power plants, with an additional 1.2 GW under construction. Documentation on environmental assessment and permitting from June 2023 indicates a total planned power supply produced by 25 coal power plants at 2.54 GW and a 1.3 GW solar power installation.[2] This disparity underscores the limited role of renewables in Harita's energy strategy.

According to the IEA NZE 2050 Scenario, to have a chance of limiting global warming to 1.5°C, no new coal power plants should have been approved since 2021. Supporting Harita Group means you risk being associated with Harita’s coal power expansion plans and being seen as partly responsible for one of the most significant sources of carbon emissions on the planet.

As of 2023, Harita's GHG emissions intensity stood at 68.4 tCO2/tNi for ferronickel and 13.4 tCO2/tNi for MHP, leading to total emissions of 7.98 MtCO2e/year. This represents almost 1% of Indonesia's total 2023 emissions and is equivalent to emissions from 1.8 million gas-powered cars driven for one year.

Harita's plans to increase production capacity - 350,000 tonnes of ferronickel and 120,000 tonnes of MHP by 2028 - pose significant environmental concerns. The Institute for Energy Economics and Financial Analysis (IEEFA) estimates that without changes to Harita's emission intensity, its annual emissions will triple by 2028 to 22.45 MtCO2e/year.

Harita Group has committed to reducing GHG emissions by 30% against the 2022 baseline in 2030. However, its 2023 emissions are doubling from the 2022 baseline, from 3.01 MtCO2e in 2022 to 7.98 MtCO2e in 2023.

Despite pledging to reduce greenhouse gas emissions, the company’s doubling of emissions in just one year demonstrates a trajectory that undermines its stated goals and exacerbates the global climate crisis.

I urge you to engage with Harita Group and refrain from providing any further financing if the company continues to build new fossil fuel power plants for its smelters. Withholding financial support under these conditions would push Harita to reduce—and ultimately eliminate—its reliance on fossil fuels while developing clear, measurable plans for decarbonisation in alignment with the Paris Climate Agreement.

[1] Gane Permai Sentosa, Halmahera Jaya Feronikel, Halmahera Persada Lygend, Megah Surya Pertiwi, Trimegah Bangun Persada
[2] Analisis Mengenai Dampak Lingkungan (AMDAL) No. 6666822eae44a, as the environmental permit approval based on the Decree of the Minister of Environment and Forestry of the Republic of Indonesia Number SK.639/MENLHK/SETJEN/PLA.4/6/2023 granted to PT Trimegah Bangun Persada. Accessed through AMDALnet, https://amdalnet.menlhk.go.id/

(your name will be added automatically)

Yes, of course I'd like to get updates about this and other Market Forces campaigns!

This field is hidden when viewing the form

TOOK ACTION: Harita - Email Action - March 2025

Harita’s nickel value chain on Obi island, Indonesia

Harita Group, a significant player in Indonesia’s nickel downstream industry, operates a comprehensive value chain on Obi Island, Indonesia, spanning from upstream to downstream activities.

The company currently owns two Rotary Kiln-Electric Furnace (RKEF) smelters with a production capacity of 120,000 tonnes per year and a high-pressure acid leach (HPAL) refinery capable of producing 55,000 tonnes of Mixed hydroxide precipitate (MHP) annually. In 2023, Harita reported the production of 101,538 tonnes of ferronickel and 63,655 tonnes of MHP.

Harita’s Nickel Value Chain on Obi Island

Harita’s nickel powered by coal power plants

Harita’s energy needs on Obi Island are met through captive coal-fired power plants, which power its smelters and other facilities. As of 2023, Harita’s GHG emissions intensity stood at 68.4 tCO2/tNi for ferronickel and 13.4 tCO2/tNi for MHP, leading to total emissions of 7.98 MtCO2e/year. This represents almost 1% of Indonesia’s total 2023 emissions and is equivalent to emissions from 1.8 million gas powered cars driven for one year.

Harita’s plans to increase production capacity—350,000 tonnes of ferronickel and 120,000 tonnes of MHP by 2028—pose significant environmental concerns. The Institute for Energy Economics and Financial Analysis (IEEFA) estimates that without changes to Harita’s emission intensity, its annual emissions will triple by 2028 to 22.45 MtCO2e/year.

While Harita has announced plans to commission a 300MW solar panel facility by 2025, its reliance on coal power remains predominant. Current facilities include 890 MW of coal-fired captive power plants, with an additional 1.2 GW under construction. Documentation on environmental assessment and permitting from June 2023 indicates a total planned power supply produced by 25 coal power plants at 2.54 GW and a 1.3 GW solar power installation.¹

¹ Analisis Mengenai Dampak Lingkungan (AMDAL) No. 6666822eae44a, as the environmental permit approval based on the Decree of the Minister of Environment and Forestry of the Republic of Indonesia Number SK.639/MENLHK/SETJEN/PLA.4/6/2023 granted to PT Trimegah Bangun Persada. Accessed through AMDALnet, https://amdalnet.menlhk.go.id/

Take action： Urge Harita’s lenders to stop funding its fossil fuel plants.

Harita’s nickel mining raises environmental and human rights concerns

The operations of Harita Group’s upstream business (Nickel mining) on Obi Island allegedly have caused significant environmental damage, severely affecting local ecosystems and biodiversity.

Drinking water sources near mining areas have been polluted with carcinogenic Cr6 at levels exceeding Indonesia’s safety standards, endangering public health. The marine ecosystem has been devastated by nickel waste disposal, turning seawater reddish-brown during rains and contaminating all tested marine biota with heavy metals.

The company has been accused of forcibly evicting residents from their ancestral lands to expand mining activities, often without fair compensation or proper consultation. Despite resistance, including protests led by local women, the company’s expansion continues to threaten the rights and well-being of the indigenous population.

Harita Group responded that the company does not cause widespread deforestation that contributes to river and sea pollution or negatively impacts residents’ health. Additionally, the company asserted that it does not, directly or indirectly, engage in any form of physical or verbal intimidation under any circumstances.

Image: Forced evictions for mining expansion—indigenous communities resist despite ongoing threats to their land and rights.© Adlun/JATAM.

Image: Nickel waste pollution turns seawater reddish-brown, contaminating marine life with heavy metals.© Adlun/JATAM.

Harita’s commitment

Harita Group has committed to reducing GHG emissions by 30% against the 2022 baseline in 2030. However, its 2023 emissions are doubling from the 2022 baseline, from 3.01 MtCO2e in 2022 to 7.98 MtCO2e in 2023.

Despite pledging to reduce greenhouse gas emissions, the company’s doubling of emissions in just one year demonstrates a trajectory that not only undermines its stated goals but also exacerbates the global climate crisis.

Banks that have loaned to Harita Group since 2018

wdt_ID	Bank	Amount loaned to Harita Group since 2018 (USD million)	Sustainability commitment and coal policy	Transaction with Harita Group despite having coal phase-out policy
142	OCBC	635	OCBC’s responsible financing framework and policies states that OCBC will not engage in or knowingly finance coal-fired power plants in project financing and corporate financing where the power generation capacity or revenue derived from coal power exceeds 25% and 50% for new and existing clients, respectively.	In April 2022, OCBC was one of the lenders to Harita group Halmahera Jaya Feronikel, which built coal power plants for its nickel smelters.
143	UOB	201	UOB’s responsible financing energy sector policy states that UOB will not knowingly provide financing to new coal-fired power plant projects. UOB also prohibits new corporate financing (general purpose) for the power generation business of a borrower, whereby coal-fired power plants account for the majority (≥ 50%) of its total power generation capacity.	In April 2022, UOB was one of the lenders to Harita group Halmahera Jaya Feronikel, which built coal power plants for its nickel smelters.
144	Indonesia Eximbank	147	No coal phase-out policy
145	Maybank	126	Maybank is committed to not financing new coal-fired power plants and power value chain business activities, including corporate lending, project financing, and advisory services such as arranging, syndicating, fundraising, and underwriting.	Maybank is one of the financiers for Harita group, Trimegah Bangun Persada, and Halmahera Persada Lygend smelter which powered by coal power plant
146	BNP Paribas	116	BNP Paribas coal-fired power sector policy stated that BNP Paribas does not provide financial products and services to new coal power plants.	BNP Paribas is one of the financiers for Harita group, Megah Surya Pertiwi and Halmahera Persada Lygend, both midstream companies with smelter powered by coal power plants
147	DBS	87	Based on DBS 2023 Sustainability report, since 2019, DBS has ceased the financing of any new thermal power assets.	In April 2022, DBS was one of the lenders to Harita group Halmahera Jaya Feronikel, which built coal power plants for its nickel smelters.
148	Bank Mandiri	85	No coal phase-out policy
149	KEB Hana	84	No coal phase-out policy
150	CIMB Niaga	79	CIMB is committed to no longer financing new coal-fired power plants.	CIMB Niaga is one of the financiers for Harita group, Trimegah Bangun Persada.
151	BNI	54	No coal phase-out policy
152	BCA	47	No coal phase-out policy
153	China Eximbank	14	No coal phase-out policy

Methodology

This webpage is intended to convey factual information about Harita Group. Information comes from the companies’ available annual reports and websites, Workspace, Bloomberg, IJGlobal and various news reports. Occasionally where information is incomplete, assumptions must be made about data and these were made in a consistent manner and in good faith. Whilst we have endeavoured to gather and include all relevant deals, we cannot guarantee the completenss of the information presented.

Harita’s response

Harita responded to this webpage on 27 March 2025. Here is Market Forces’ response to Harita’s letter.

Disclaimer

The information provided by Market Forces does not constitute financial advice.

The information and actions provided by Market Forces do not account for any individual’s personal objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice.

Market Forces recommends all users obtain their own independent professional advice before making any decision relating to their particular requirements or circumstances.

For more information about Market Forces, please visit the about page of the site.

Last Updated: April 2025

Join us

Subscribe for email updates: be part of the movement taking action to protect our climate.

Name(Required)

Email(Required)

Country(Required)