August 29, 2025
JAKARTA – PT Vale Indonesia, Indonesia’s second-largest nickel producer, is under scrutiny following an oil pipeline leak in South Sulawesi that has contaminated rivers and farmland.
The leak, detected on Tuesday in the village of Lioka in Towuti district, about 20 kilometers from Vale’s processing plant, has affected water sources and irrigation systems across five villages.
Local agriculture officials estimate that at least 50 hectares of rice fields in Lioka have been damaged, with more land in Matompi and Timampu at risk, warning that the contamination could impact hundreds of ha of farmland if containment measures take too long.
“There were indeed plans for the farmers to start working on their rice fields this week, but since the water is still contaminated, we have asked them to postpone,” said Mila Novitasari, an agricultural extension officer at East Luwu, was quoted as saying by news agency Antara on Wednesday.
The South Sulawesi chapter of environmental NGO Walhi urged the government to impose strict legal penalties.
“This is extraordinary environmental pollution in the category of a serious violation and should be prosecuted. The government must be brave and serious, indiscriminate against companies committing environmental pollution,” said Al Amin, Walhi’s executive director, as reported by Antara on Thursday.
He warned that the consequences go far beyond technical failure, impacting vital resources for daily life.
“You can imagine the impact, the river that has been used by the community and rice fields has become a source of polluted life,” he said.
Walhi demanded that Vale’s environmental permit be revoked, along with its Green PROPER rating, an annual government award the miner consistently earned for exceeding environmental standards.
“There is no mercy for PT Vale Indonesia, it must be strongly sanctioned by the state. Based on Law No. 32 of 2009 and the environmental cluster of the Job Creation Law, this company should be subject to heavier sanctions,” he said.
Read also: Indonesia urges EU to remove countervailing duty on biodiesel after WTO ruling
South Sulawesi Governor Andi Sudirman Sulaiman has pressed Vale Indonesia to act swiftly and restore damaged areas, emphasizing the need for strict operational safety standards.
“I have instructed the South Sulawesi Energy and Mineral Resources Agency to visit the site and ensure immediate measures are taken to minimize and mitigate the impact,” Sudirman told Antara on Tuesday.
He urged Vale not to neglect environmental risks or community safety.
Read also: US agrees tariff exemption for RI’s palm oil, cocoa, rubber, senior minister says
In response, Vale said it was coordinating with local authorities, including the Disaster Management Agency, the Environmental Office, the police and the Indonesian Military, to handle the matter transparently.
“We ask for your support as we work through this incident. This situation has strengthened the company’s commitment to crisis mitigation and to accelerating recovery efforts in the affected areas,” said Endra Kusuma, head of external relations at Vale Indonesia, in an official statement on Tuesday.
The company confirmed that the leak was caused by ground movement that damaged an old water distribution pipeline used during former mining operations. The liquid seeped into nearby settlements, farmland and parts of the river.
While no casualties have been reported, residents remain concerned as water sources are contaminated and crop failures are likely.
To manage the impact, Vale has deployed oil booms, oil traps and containment barriers, while also conducting soil and water testing.
The company has opened a complaint and information center for affected residents and pledged full environmental and social restoration. It said it had formed a team tasked with assessing the impact and ensure follow-up actions are accountable and measurable.
“The safety of the community and environmental preservation are non-negotiable priorities. We are committed to handling this incident transparently and responsibly, with measurable actions and collaboration from all parties,” Vale’s director and chief sustainability & corporate affairs officer, Budiawansyah, said in a statement on Wednesday.
Vale was not immediately available to provide the latest update when contacted by The Jakarta Post.