Andhini Octa Maharatih
AS INDONESIA ASPIRES to achieve its dream, the archipelagic nation of Southeast Asia requires heavy investment to support its economic growth. With natural resources such as nickel, coal, gold, and minerals, more than 38 foreign mining companies, both public and private, have invested in Indonesia due to the low cost of raw materials, relatively low wages, and strategic location rich in natural resources. This has undoubtedly contributed to Indonesia’s economic growth and development. In 2024, the Ministry of Investment and Downstream Industry recorded investment growth of 15.24% and downstreaming of 21.6%, making it the largest contributor to economic growth in Indonesia. China is one among of the five major countries eager to invest in Indonesia.
Indonesia Morowali Industrial Park
PT Indonesia Morowali Industrial Park (IMIP), built by Shanghai Decent Investment Ltd under the Tsingshan Group and engaged in the nickel industry to be used as materials such as stainless steel, UV batteries and carbon steel, specifically in Morowali, Central Sulawesi. Established since 2014, IMIP has created extensive employment opportunities for the people of Sulawesi, almost 93% of whose workers are from Indonesia and has become one of the largest nickel companies in Indonesia with a percentage of 50%. In addition, compliance in paying royalties and taxes makes this company increasingly provide long-term benefits to the country’s foreign exchange that continues to flow. PT IMIP also certainly has a significant impact on economic growth recorded 71% and ranks 10th as a company that influences economic growth achieved by national strategic projects.
Workers Safety inside World’s Largest Nickel Factory
However, despite significant economic growth, a number of workplace accidents remain, despite compliance with occupational safety and health regulations. In 2023, a workplace accident occurred when a furnace exploded, sparking a fire. This fire resulted in numerous fatalities, with more than 13 workers killed and others suffering serious and minor burns. A similar incident occurred in 2022, when a nickel shelter exploded at the company’s unit. This accident left numerous workers injured, forcing them to silence their voices for the sake of the company’s reputation. The explosion generated a cloud of smoke that was inhaled by residents due to the company’s proximity to residential areas.
Not only in 2023, but in 2025, work accidents also occurred in the IMIP area, which is prone to landslides caused by heavy rainfall and vulnerable points that can cause flooding. Reports from the Ministry of Environment revealed that there are practices that can endanger the surrounding community and the environment. There is a practice of open dumping, which drains floodwater into the sea without intensive waste treatment, causing some residential areas to be inundated. Disposal of nickel slag and tailings in several vulnerable areas is also not being addressed by the government, which of course can result in heavy metal pollution that is detrimental to marine life and soil fertility.
In addition to the discovery of open dumping practices, a work accident resulted in the deaths of three workers due to a landslide that occurred in the tailings pond disposal area due to heavy rain. The community is naturally concerned about this because, in addition to being close to residential areas, tailings are hazardous waste, which, if not intensively managed, could expose residential areas to toxic waste. The public believes the frequent accidents are a result of poor safety measures. Some are demanding an evaluation and improvement of the safety of the tailings waste facility to prevent similar incidents in the future.
Indonesian mining performance data shows that PT IMIP’s working conditions rank eighth with score 29 among nickel companies in Indonesia, with a low level of occupational safety monitoring for its workers. These recurring incidents have prompted media outlets to investigate the frequent accidents. However, the media are not permitted to delve deeper into the company’s safety procedures. In response to public disappointment, PT IMIP frequently engages in social and environmental sustainability initiatives to maintain public acceptance. These initiatives include the provision of cleaning facilities, garbage trucks, mangrove planting in coastal areas, community involvement in waste management, and more. This has led to speculation that the company is deliberately greenwashing itself to maintain a positive public image despite the high number of workplace accidents and the potential for waste to disrupt the natural ecosystem.
Therefore, the state needs to oversee the ongoing down streaming process. Full government oversight and firmness are required to provide special treatment for problematic companies. ESG issues are currently being touted internationally, in connection with the 2030 SDGs. This is not only about preserving the environment but also about creating a safe space for indigenous communities to enjoy the natural resources inherited from their ancestors. Developing countries are often faced with the trade-off between investor-friendly approaches and the sacrifice of the environment and long-standing indigenous communities due to their ambitions to generate economic growth on the international stage. However, the state also needs to be firm in taking action against foreign companies that violate regulations by thoroughly investigating the issues, building adequate facilities, and ensuring public freedom of expression.
[ Andhini Octa Maharatih is a COGGS intern and student at Department of International Relations, UPN Jawa Timur Veteran University. ]
References:
https://kemenlh.go.id/news/detail/negara-tidak-boleh-lengah-menteri-lh-sidak- kawasanindustri-nikel-di-morowali-temukan-pelanggaran-lingkungan-serius https://www.bkpm.go.id/id/info/siaran-pers/rosan-realisasi-investasi-terus- bertumbuhindonesia-konsisten-jalankan-hilirisasi https://responsibleminingindonesia.id/id https://jdih.esdm.go.id/common/dokumenexternal/UU%2032%20Tahun%202009%20(P PLH).pdf https://mongabay.co.id/2025/06/25/klh-temukan-pelanggaran-lingkungan- serius-di-imip/ https://imip.co.id/wp-content/uploads/2025/02/IMIP-ESG-Report- 2023.pdf