Safety Concerns and Labor Unrest in Indonesia’s Nickel Mining Amid EV Battery Hub Ambitions

Indonesia, aiming to become a key manufacturing hub for electric vehicle (EV) batteries, is facing challenges due to safety issues in its nickel mining industry. The country, which holds the largest global reserves of nickel, a critical component in EV batteries, has seen a series of fatal accidents in its mines, particularly those operated by Chinese companies.

In a recent incident at PT Gunbuster Nickel Industry (GNI) in Morowali, Central Sulawesi, a fire resulted in the death of one worker and injuries to six others. This follows a number of other fatal events at GNI, including a deadly riot and fire in previous months. GNI has stated that an investigation into the cause of the fire is underway, but the company has not yet responded to requests for comments on these incidents.

PT Indonesia Morowali Industrial Park (PT IMIP), a joint venture between China’s Tsingshan Steel Group and Indonesia’s PT Bintang Delapan Group, has witnessed fatal accidents, including a recent collapse at a nickel waste disposal site.

Muhammad Habib Abiyan Dzakwan, a researcher at the Center for Strategic and International studies (CSIS) in Jakarta, highlighted that poor working conditions could lead to social tension and operational disruptions. He expressed concerns about the potential impact on the competitiveness of Indonesia’s nickel industry.

Indonesia’s strategic plans include becoming a major player in the EV supply chain, with agreements worth over $15 billion with companies like Hyundai Motor, LG Group, and Foxconn. However, rising demand for nickel has led to increasing calls from workers for better working conditions and safety standards.

Reports of harsh labor conditions, including excessive working hours, poor protective equipment, and accidents, are common. Workers at PT IMIP and other plants have filed complaints regarding their working conditions. Airlangga Julio, a lawyer representing some Chinese workers, mentioned issues like passport withholding, frequent accidents, and inadequate personal protective equipment.

PT IMIP’s spokesperson stated that safety is a priority and that they plan to build clinics for workers. However, Indonesian workers like Yan, employed at a construction site within IMIP, have expressed fear for their safety due to inadequate safety measures.

Habib from CSIS emphasized that overlooking social and labor issues in the mining industry could impact foreign investment. He pointed out that buyers are increasingly aware of social and environmental conditions in the products they purchase. Ensuring good working conditions could attract more Western investors and protect Indonesian workers.

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