Why Should We Care if Indonesia's "Jakarta Model" for Critical Minerals is Bad for Indonesians? | with Dr. Alvin Camba

In this episode, hosts Ray Powell and Jim Carouso welcome Dr. Alvin Camba, a sociologist who studies Southeast Asian political economies, China relations, and critical mineral supply chains. Camba, author of the New America article "The Jakarta Model is No Blueprint," critiques Indonesia's export ban on raw nickel and incentives for domestic refining, which have driven economic growth and positioned the country as a key EV battery supplier but have also resulted in severe human and environmental costs.​​

Growth at what cost? Camba explains the "Jakarta model” - policies forcing mining firms to sell domestically, spurring smelters and industrial parks but creating oligopsonies where refiners dictate low prices, triggering a "race to the bottom" in mining practices. This has led to widespread environmental damage like air pollution, acid leakage, water contamination, land grabs, and health issues, including rising asthma and cancer rates near facilities since 2019, while workers endure 10-12 hour shifts over six-day weeks.​

Impressive parks, hidden harms: Inside sites like those in Sulawesi, visitors see advanced infrastructure with airports, ports, hotels, and thousands of workers, often funding local clinics and schools, which sustains public support despite scandals. Yet, mining outside these parks produces tailings dumps and forest clearance, while smelters emit pollutants into the air and rivers; in Kalimantan, bauxite processing creates radioactive red mud waste.​

Global copycats and Western challenges: Countries like Namibia, Nigeria, Zimbabwe, and the Philippines eye the model for capital influx, often ignoring downsides amid weakened environmental oversight and political ties to Chinese joint ventures dominating smelters. Camba urges slower development with strong regulations, consultations, and transparency; for the West, building refining capacity requires market incentives to counter China's cheap, dirty dominance, with short-term reserves bridging gaps amid U.S.-China standoffs over rare earths and semiconductors.​

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