IMIP, whose largest shareholder is a Tsingshan Holding Group subsidiary, explained that the accident, occurring at 17.30 Central Indonesia Time (WITA) on Dec. 24, 2023, was caused by residual explosive liquid in the furnace while workers were installing plates and performing repairs. The blast triggered further explosions due to nearby oxygen cylinders that are used for said repairs. In the aftermath, the accident led to the death of 21 workers as of Jan. 2, 2024, comprising of 13 Indonesian citizens and eight Chinese expatriates. Furthermore, 38 workers require intensive care.

The Central Sulawesi Regional Police Force stated that based on witness statements, there might have been a violation of Article 359 and 360 of the Indonesian Criminal Code (KUHP), with those proven to be responsible for causing the incident could be charged for up to five years in prison.

Universitas Trisakti criminal law expert Abdul Fickar Hajar added that that those whose orders or participation led to the accident, such as by tasking unqualified workers with inadequate equipment, can also be charged with Article 55 and 56 of the KUHP. Therefore, observers are urging that not only field workers who were directly involved in the accident to be charged, but also those in the top management for failing to build a system that ensures workers’ safety.

The Indonesian Forum for the Environment (Walhi)’s Central Sulawesi chapter noted that three OSH incidents within IMIP in 2023 did not result in penalties for the firms involved. Instead, the firms punished workers demanding their rights. At the same time, Association of People's Emancipation and Ecological Action (AEER) found that IMIP’s economic benefit to locals was suboptimal, although its research may have been muddled by impacts from the COVID-19 pandemic. In the end, ITSS accident prompted House of Representatives Commission VII to request for audits on all smelters in IMIP.

According to initial analysis of ITSS documents by an oversight team consisting of Manpower Ministry and Central Sulawesi Manpower Office officials, ITSS shows indications that they have not completed the occupational health and safety management system (OSHMS) audit required by Government Regulation No. 50/2012 for firms with more than 100 workers. However, ITSS responded that it has received the ISO:45001 OHSMS certification in 2018. Furthermore, a team member told Tempo that only Huayeu Nickel Cobalt has completed an OHSMS audit among firms that operate in IMIP.

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Workers held a rally ton Dec. 27 in light of the accident. Among their demands are for IMIP to provide compensation for victims of the accident, in which IMIP had given Rp600 million (US$38,617) for families of those killed and varying undisclosed payments for those injured, while keep ensuring workplace safety. Other demands include, among others, periodic renovations, ensuring qualified and competent OSH officials, as well as increasing healthcare facilities, which includes the provision of more ambulances.

What’s more

Trend Asia highlighted that at least 53 smelter workers, 40 Indonesians and 13 Chinese nationals, died at nickel smelters in Indonesia between 2015 and 2022. The civil society group also urged the government to evaluate the working conditions and treatment of workers in nickel processing areas. Meanwhile, the Makassar Legal Aid Institute (LBH Makassar) recorded at least 19 fatal incidents at nickel processing facilities from January to September 2023 alone, which caused the deaths of 16 people and injured 37 others.

The accident at the ITSS furnace was followed by a fire at a nickel smelter owned by Jiangsu Delong Nickel Industry subsidiary Gunbuster Nickel Indonesia, which happened at about 17.20 WITA on Dec. 28, 2023. The cause of the fire was a spark that burned plastic equipment and supplies in the smelter, according to the Central Sulawesi Regional Police Force. The next incident in IMIP was a mine excavation landslide that killed two workers at Sumber Permata Mineral’s nickel mine on Dec. 30, 2023.

Moreover, he troubled Job Creation Law may have contributed to the OSH troubles afflicting IMIP facilities through deregulating provisions, which may have compromised safety standards, in a bid to attract more investors to Indonesia. Intertwined with the legislation’s potential impact is the government’s natural resources “downstreaming” mission, of which IMIP is part of for the country’s nickel industry. This could have also influenced the rate of accidents in the industrial park by creating urgency to achieve returns that encourages compromises in OSH.

What we’ve heard

A source at the Manpower Ministry stated that there has been continuous neglect of audits within the internal affairs of ITSS. Despite being established in 2014, the company has never conducted an audit of the occupational safety and health management system (SMK3).

The SMK3 audit should have taken place shortly after the establishment of the company, especially considering that ITSS is a company with more than 100 employees and high risks. Apparently, according to the source, many personnel in the company are not certified and have not been trained in occupational health and safety (K3) matters. This issue is not unique to ITSS but is prevalent in almost all companies in the Morowali industrial area. The problem becomes more complicated after the Job Creation Law (UU Cipta Kerja) came into effect, as K3 supervision for smelter companies shifted to the Industry Ministry (Kemenperin) and no longer involves the Energy and Mineral Resources Ministry (ESDM). Compared to before, the new approach to supervision does not involve mine inspectors.

Meanwhile, supervisors from the Central Sulawesi Manpower Office have had difficulty entering the Morowali industrial area to check whether companies in the Morowali Industrial Park are implementing K3 in accordance with regulations. "They act like an independent kingdom. We struggle to enter," said another source.

On the other hand, ITTS has also been negligent in carrying out smelter furnace repair procedures. The repairs are conducted while the furnace is still hot, and the company allows only up to 3-day breaks for stopping furnace operations. However, a 3-day period is not sufficient to cool down the smelter explained a source at the Manpower Ministry. "It (furnaces) should be shut down for a week," he continued.

The order to immediately carry out repairs comes from higher-level authorities because the smelter has been inactive for too long. The problem is, out of the 29 witnesses already examined, the police investigation has only been looking into lower-level employees.

Disclaimer

This content is provided by Tenggara Strategics in collaboration with The Jakarta Post to serve the latest comprehensive and reliable analysis on Indonesia’s political and business landscape. Access the latest edition of Tenggara Backgrounder to read the articles listed below:

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3. Nascent anti-immigration movement makes waves in Indonesia          

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