ASIATODAY.ID, JAKARTA – Indonesia’s Ministry of Manpower has reported alarming figures between 2019 and 2025: a total of 104 workplace accidents occurred in the country’s nickel smelter industry, resulting in 107 deaths and 105 injuries.
The data expose the grim reality behind Indonesia’s nickel downstreaming program, long hailed as a pillar of national economic growth.
According to Hugo Nainggolan, Junior Expert at the Directorate General of Labor Inspection and Occupational Safety and Health (OSH), negligence in implementing occupational health and safety standards is the primary cause of the repeated accidents.
“Many companies have not even established standard operating procedures (SOPs) for high-risk work. Internal supervision is weak — production targets remain the only focus,” Hugo said during the Aksi Ekologi dan Emansipasi Rakyat (AEER) forum on Monday, November 3, 2025.
He added that many production machines in nickel smelters are poorly maintained and still operated despite being unfit for use. Furthermore, numerous workers in high-risk areas lack proper certifications or licenses, including heavy equipment operators, riggers, and first aid officers.
“Many don’t even have the required competence, let alone the authority,” Hugo emphasized.
Limited Inspectors, Minimal Reporting
Indonesia’s Ministry of Manpower currently employs only 1,400 labor inspectors across 38 provinces—an insufficient number to monitor an industry as massive as nickel extraction and processing.
To strengthen oversight, the government has introduced a digital platform called Teman K3, integrated with data from BPJS Ketenagakerjaan (the national workers’ insurance agency).
The public can also serve as whistleblowers by reporting violations through the Lapor Menaker feature, with assurances that their identities will remain confidential.
Weak Sanctions, Outdated Laws
Under Law Number 1 of 1970, occupational safety violations carry only a three-month jail term or a Rp100 million (≈USD 6,000) fine—penalties deemed far too lenient.
The government has attempted to strengthen enforcement through Government Regulation (PP) Number 28/2025, enabling cross-ministerial sanctions, including business license revocation via the OSS system.
“The revision of Law No. 1 of 1970 is underway, but it requires strong support from all stakeholders,” Hugo noted.
Smelter Accidents: The Dark Side of Nickel Downstreaming
The wave of accidents in nickel smelters highlights the stark imbalance between industrial ambition and worker safety.
Environmental organizations such as WALHI and Greenpeace have long criticized the government for weak monitoring and law enforcement in the mining and smelting sectors—failures that endanger both human lives and the environment.
Activists urge the government to align its downstreaming agenda with ESG principles (Environmental, Social, and Governance) to ensure that economic development does not continue to cost lives behind the furnaces of nickel production.
Outdated Occupational Safety Law
Damar Panca, Secretary-General of the Confederation of Indonesian Labor Unions (KPBI), said that the country’s Occupational Safety Law (Law Number 1/1970) is outdated and no longer aligned with today’s industrial realities.
The law was enacted during Indonesia’s manufacturing era, while the nation has now shifted toward a resource-extractive economy with far higher occupational risks.
“The government must include occupational safety (K3) as a key issue in the law’s revision. This should serve as a warning for companies that repeatedly violate safety standards,” Damar urged.
He also criticized the weak enforcement of both administrative and criminal sanctions against companies that neglect safety protocols.
For example, corporate fines can be as low as Rp15 million (≈USD 900) — and even reduced to Rp1 million (≈USD 60) after legal proceedings.
“With fines that small, how can there be any deterrent effect for billion-dollar companies?” Damar questioned.
He further argued that K3 certification has become mere formality for many corporations, who stop implementing safety measures once they secure certification from the Ministry of Manpower. Weak government oversight, he added, has allowed such negligence to persist.
“The rising number of fatal workplace accidents in Indonesia’s nickel industry serves as a dire warning. Without strict enforcement and genuine accountability, the nation’s downstreaming dream may turn into a graveyard for industrial workers — where economic ambition continues to come at the cost of human lives,” Damar said. (AT Network)
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