Sustainable Nickel Downstreaming Governance in Indonesia: A Maqasid al-Shari'ah Perspective
Abstract
This study examines two contrasting governance configurations for nickel downstreaming in Indonesia: the Indonesia Morowali Industrial Park (IMIP) in Central Sulawesi, representing a speed-and-scale, vertically integrated industrialization model, and PT Vale Indonesia's operations in Sorowako, South Sulawesi, representing a comparatively established, hydropower-supported, and sustainability-oriented model. Rather than comparing a company with an industrial estate as if they were equivalent organizational units, the study defines the analytical object as the governance configuration through which nickel is mined, processed, energized, regulated, and connected to local and national benefit distribution. The study uses a qualitative comparative case-study design and a transparent documentary protocol. The documentary corpus contains 24 sources: nine peer-reviewed journal articles, one working paper, six books, six institutional or policy/industry sources, and two corporate sustainability reports. Case-performance evidence is prioritized for 2019–2026, while foundational theoretical sources are retained irrespective of publication year. Evidence is coded deductively across economic, Environmental, Social, and Governance (ESG) dimensions and then evaluated through Hifz al-Nafs, Hifz al-Bi'ah, Hifz al-Mal, intergenerational responsibility, and the cross-cutting principles of amanah, adl, maslahah, and dar'u al-mafasid. The comparison indicates that IMIP generates strong maslahah through investment, employment, value-chain integration, and industrial scale, but faces greater challenges associated with fossil-based energy, emissions, occupational safety, and cumulative ecological pressures. PT Vale shows comparatively stronger alignment with human and ecological protection, particularly through hydropower and environmental management, while questions remain concerning the breadth and durability of economic benefit distribution. The paper argues that Maqasid is not simply an Islamic vocabulary for ESG: it changes the decision rule by treating benefits and harms as morally ordered, requiring proportionality, prevention of avoidable harm, accountability for stewardship, and conversion of non-renewable wealth into durable human, social, and ecological capital. On this basis, the paper proposes a Maqasid-Based Sustainable Nickel Industrialization Framework.