Indonesia’s ‘bloody nickel’ under fire as US flags forced labour concerns

Reports of worker exploitation and accidents threaten a critical minerals deal with the US, driving calls for reform and more oversight

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A worker at a nickel smelter in Indonesia’s South Sulawesi province. Photo: AFP

Published: 12:30pm, 22 Sep 2024Updated: 4:41pm, 24 Sep 2024

Indonesia’s nickel industry faces mounting scrutiny after being flagged by US authorities for forced labour, a designation analysts say should serve as a “wake-up call” to Jakarta as it attempts to secure a critical mineral deal with Washington.

The US Department of Labour’s latest report on the “Global State of Child and Forced Labour” classified Indonesian nickel as a product of exploitative practices, citing various news reports and research from non-governmental organisations.

“Forced labour taints the supply chain of … crucial minerals, including aluminium and polysilicon from China, nickel from Indonesia, and cobalt, tantalum, and tin from the DRC [Democratic Republic of Congo],” Thea Lee, deputy undersecretary for international labour affairs at the agency, said during a September 5 press briefing.

“Workers face abuses like excessive and involuntary overtime, unsafe work, unpaid wages, fines, dismissal, threats of violence, and debt bondage.”

The 330-page report also highlighted the plight of “deceptively recruited” Chinese workers at Indonesia’s nickel smelters, revealing issues such as arbitrary wage deductions, longer hours, passport confiscation, and physical and verbal abuse as punishment.

“Other indicators of forced labour … include restriction of movement, isolation, constant surveillance, and forced overtime; all of which are reportedly common practices in the production of nickel,” the report said.