Structural dependency and environmental challenges in the Indonesia–China nickel supply chain for electric vehicle production

This study investigates the Indonesia–China nickel supply chain in electric vehicle (EV) production through the framework of dependency theory, focusing on its structural economic and environmental impacts. Despite Indonesia’s position as the world’s largest nickel producer and China’s dominance in EV manufacturing and battery production, the bilateral cooperation reveals a dependency pattern marked by Chinese control over Indonesia’s nickel refining sector, Indonesia’s balance of payments deficits worsened by profit repatriation, and technological monopolies upheld by Chinese investments. This dependency structurally limits Indonesia’s capacity for sustainable development and environmental governance. The resulting environmental consequences include deforestation, air and water pollution, driven by weak regulatory enforcement and prioritization of foreign investment interests. The study employs a qualitative descriptive method using secondary data sources and triangulation for validity. It applies Dos Santos’ New Dependency framework to analyze economic and technological asymmetries. The findings highlight that Indonesia’s nickel sector growth, while economically beneficial, perpetuates ecological harm as an inherent outcome of dependency.