Ford Must Take Responsibility For Human Rights Violations and Environmental Destruction at Indonesia’s Pomalaa Block Project
Despite strongest responsible mineral source policies, Ford’s investments in Southeast Sulawesi fall short of reputation
Washington DC/Jakarta — Lead the Charge today released its 2026 leaderboard, revealing Ford Motor Company ranks as the automaker with the strongest human rights due diligence and responsible mineral sourcing policies of all top automakers reviewed by the scorecard. But Ford still has work to do, say advocates, given recent reports from Satya Bumi documenting human rights violations, environmental destruction, and public health harms linked to the Pomalaa Block Project, home to the Kolaka Nickel Indonesia (KNI) smelter—an operation in which Ford holds an 8.5% stake.
In 2022 , Ford invested in the Kolaka Nickel Indonesia (KNI) smelter in the Pomalaa Industrial Park (IPIP) in Southeast Sulawesi, Indonesia. In exchange for Ford’s investment, Ford receives exclusive rights to up to 84,000 tonnes of nickel per year for its electric vehicle battery production.
According to the report from Indonesian environmental group Satya Bumi, the smelter has extremely harmful impacts on the surrounding community, including:
- Violations of Free Prior and Informed Consent (FPIC)for Indigenous peoples
- Illegal landgrabbing
- Intimidation by the police and military
- Destruction of old growth rainforest
- Water and air pollution causing health concerns and reduced crop yields
According to the Lead the Charge scorecard, unlike many of its peers, Ford is committed to respecting the United Nations Declaration on the Rights of Indigenous Peoples and FPIC and requires all mines, smelters, and refineries in its supply chain to undergo an audit by the Initiative for Responsible Mining Alliance (IRMA).
“As a leader in human rights due diligence and responsible mineral sourcing, Ford Motors has an obligation to leverage its policies and its investments in the destructive KNI smelter. It is Ford’s responsibility to mitigate the harmful impacts of this project, protect the environment, and ensure adequate remuneration for displaced peoples,” said Abhilasha Bhola, auto supply chain campaign director with Public Citizen’s Climate Program. “If Ford cannot follow through on its own commitments, they are meaningless. Ford must demonstrate its leadership through its actions, not just written policies.”
“Ford has chosen to partner with companies that have troubling human rights records, and that choice affects their commitments,” said Salma Inaz, campaigner with Satya Bumi. “If Ford truly upholds the principle of being committed to consumer satisfaction, they are obligated to ensure that their products are not produced from deforestation, human rights violations, or threats against indigenous communities.”
In Satya Bumi’s findings, 72 people (43 men and 29 women) aged 33 to 68 from Indigenous Bajau, Tolaki-Mekongga, and Toraja communities in Pomalaa are losing their land, their fishing grounds, and their health.
“Ford must reconsider its partnerships in the Pomalaa block and take accountability for the results of its investments,” stressed Inaz. “The energy transition and vehicle electrification will amount to nothing more than false climate solutions if, in practice, they come at the expense of communities, fuel human rights abuses, and drive environmental destruction.”
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Summary of Research Findings on the Pomalaa Block Project
In 2025, Satya Bumi,Puspaham, and Public Citizen conducted an in-depth investigation and risk assessment concerning communities in Pomalaa District, Kolaka Regency, Southeast Sulawesi affected by the development of the Indonesia Pomalaa Industrial Park (IPIP). IPIP has received direct investment from multinational corporations—Ford Motor Company, PT Vale Indonesia, and Zhejiang Huayou Cobalt. These three companies formed a partnership to develop a High-Pressure Acid Leach (HPAL) nickel processing facility known as Kolaka Nickel Indonesia (KNI). KNI is currently the primary smelter tenant within the Pomalaa industrial zone, with the broader industrial concession projected to cover approximately 11,000 hectares in Kolaka Regency. Full Report
Key Findings
- Corporate Structure and Investment Commitments
Through a joint agreement between Vale Indonesia, Zhejiang Huayou, and Ford Motor Company, the HPAL smelter Kolaka Nickel Indonesia is designed to produce 120,000 tonnes per year of Mixed Hydroxide Precipitate (MHP).
- Total investment KNI: IDR 3.304 trillion (approximately US$196 million). Vale Indonesia holds 5.8% shares and serves as the exclusive nickel ore supplier to the smelter. Ford Motor Company holds 8.5% of KNI shares, investing approximately US$16.64 million in exchange for exclusive rights to receive up to 84,000 tonnes of nickel per year for EV battery production. Zhejiang Huayou is the majority shareholder of KNI and IPIP. Huayou plans to develop precursor production, ternary cathode materials, battery recycling facilities, and Lithium Iron Phosphate (LFP) battery.
- Total Investment IPIP: IDR 740.3 billion(approximately US$50 million). Majority owned by Zhejiang Huayou and 30% by Rimau New World (this company is part of Rimau Group that is engaged in coal mining in Barito Kalimantan).
- Environmental threats are creating risks for indigenous peoples and causing the collapse of livelihoods for local communities.
The industrial expansion opened more than 2,000 hectares and we detected deforestation within the IPIP–KNI expansion area covering 274.9 hectares between 2022– October 2025. Vale Indonesia’s mining permit area and IPIP-KNI Concession area overlaps with crucial ecosystems and critical watersheds that have increased sedimentation, red mud runoff, and declining water quality. Vale, Ford, and Huayou all touted strong environmental and social standards at this project. We interviewed 102 residents for the research. But only 72 people (43 men and 29 women), aged 33 to 68, completed all the questions and met the research criteria. They are residents affected by the Industrial Park Project. Respondents were from diverse indigenous groups such as Bajau, Tolaki-Mekongga, Toraja, and Bugis and were primarily fisherfolk and farmers.
The current operation harms the communities’ livelihoods and erodes Indigenous peoples’ way of life:
- Farmers reported that their harvest declines exceeded 50% due to flooding and sedimentation.
- Fishers reported drastic reductions in coastal catch linked to water pollution and shoreline degradation. Compensation processes remain inconsistent and, in many cases, unresolved.
- Bajau community known as the sea people, have seen their marine lifeline contaminated and degraded by the industrial park and mining. Fishing grounds are shrinking, waters are polluted, and the sea, that once sustained them, is increasingly unsafe. Bajau children can no longer safely swim or spend hours in the water to inherit their indigenous maritime skills that define their identity. Skin diseases and health problems linked to deteriorating water quality are now part of daily life.
- Land Grabbing and Militarization
Residents report land grabs and clearing prior to full agreement on compensation, Free Prior Informed Consent was not properly conducted with Indigenous communities. There is documentation of involvement by police during land acquisition processes involving PT Rimau New World. Nearly all the Indigenous community we interviewed stated that PT Rimau approached them accompanied by police officers and military personnel. Some community members alleged intimidation and criminalization after raising objections to land-clearing activities. The involvement of security forces in civil land disputes raises concerns regarding proportionality, legality, and respect for human rights.
Conclusion
Considering the extensive damage inflicted , these are the most urgent demands from communities and civil society organisations to the owners, operators, and investors of the Pomalaa Block Project:
- Stop destructive land clearing in watersheds and protected forests.
- Implement proper and meaningful FPIC processes
- Publish and make the affected area list easily accessible
- Conduct independent audits and fair compensation and reparations to the affected communities (health, livelihood, bereavement for worker deaths).
- Publish accessible and transparent public data on pollution monitoring and functioning grievance mechanisms for the communities.
- Provide fair and adequate compensation for rice fields and Fishpond affected by flooding.
- Restore the Oko-Oko watershed, including the construction of protective embankments along the river system extending to the estuary.
- Develop secondary drainage channels from the river embankments to the Lawani rice field area to improve water management.
- Repair agricultural access roads damaged by flooding to ensure continued farming activities.