1 Chapter I Introduction I.1 Background Nickel mining has become an essential contributor to the Indonesian economy, with Indonesia being the world's largest nickel ore producer. In 2021, the Ministry of Energy and Mineral Resources (ESDM) of Indonesia targeted nickel production to reach 2.47 million tonnes, up from 2.41 million tonnes in 2020, driven by increasing global demand for nickel, a critical material in EV batteries (ESDM, 2021). Indonesia is crucial in meeting the escalating global demand, particularly from the electric vehicle (EV) industry and other high- tech sectors. The strategic importance of nickel is underscored by its essential role in manufacturing lithium- ion batteries, a key component in the transition towards cleaner energy technologies (Valero et al., 2018). This trend aligns with the Indonesian government's commitment to reducing greenhouse gas emissions by 29% by 2030 and achieving Net Zero Emissions by 2060 (IESR, 2023). Economically, the nickel mining industry must navigate the complexities of ensuring long-term viability while minimizing environmental and social costs (World Economic Forum, 2023). This involves balancing immediate economic benefits with the need for sustainable practices that ensure the industry's future. The fluctuating nature of the global market, coupled with technological advancements and regulatory changes, adds another layer of complexity to the industry's economic sustainability (Fanny et al., 2021). Given the critical role of nickel in the global market and Indonesia's dominant position as a supplier, addressing these sustainability challenges is paramount (Oxford Business Group, 2021). Developing sustainable mining practices is not only essential for environmental conservation but also for ensuring long- term economic benefits and social harmony (Yu et al., 2024). Adopting strategic planning frameworks, such as scenario planning, can help anticipate future developments and formulate robust strategies to promote sustainability in the nickel mining sector. This study aims to explore these dimensions comprehensively, providing scenarios for sustainable nickel mining in Indonesia. 2 I.2 Problem Statement The Indonesian nickel mining industry stands at a critical juncture, facing significant sustainability challenges that threaten its long-term viability and overall contribution to the nation's economic and social well-being (Pusnawan, 2024). The industry's current trajectory is marred by a host of environmental, social, and economic issues that require immediate and strategic attention. Environmental degradation remains one of the most pressing issues confronting the industry. The extensive mining operations have led to alarming levels of deforestation, soil erosion, and water pollution (Yu et al., 2024). These environmental impacts have far-reaching consequences, not only disrupting local ecosystems but also contributing to broader environmental issues such as climate change and loss of biodiversity (Prematuri, 2020). The degradation of natural habitats and ecosystem services poses a severe threat to the long-term sustainability of nickel mining in Indonesia (Naryono, 2019). Social conflicts further complicate the landscape of nickel mining in Indonesia. There are ongoing disputes over land rights between local communities and mining companies, leading to tensions and sometimes violent confrontations (Oh et al., 2023). These conflicts are rooted in the historical and socio- cultural contexts of land ownership in Indonesia, where land is not just an economic asset but also a vital component of community identity and heritage. Additionally, labor issues within the mining industry, characterized by inadequate working conditions and compensation, have resulted in frequent strikes and unrest among mine workers (Marshall et al., 2013). These social challenges highlight the urgent need for policies and practices that ensure fair and equitable treatment of all stakeholders involved in the mining sector. Economically, the industry faces the daunting task of maintaining its profitability while adopting sustainable practices. The volatility of global nickel prices, driven by fluctuations in demand and supply, technological advancements, and regulatory changes, adds to the economic uncertainties (Wang et al., 2023).