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Bahlil discusses reliance on foreign labor in nickel downstreaming
Energy and Mineral Resources Minister Bahlil Lahadalia completed his doctoral program in only one year and eight months, causing an uproar among University of Indonesia alumni.
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Golkar Party politician Bahlil Lahadalia explains his mission and vision during the party’s national congress in Jakarta on Aug. 21, 2024. The congress agreed to name Bahlil, the current energy and mineral resources minister, chairman of Golkar for the 2024-2029 period. (Antara/Akbar Nugroho Gumay)
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nergy and Mineral Resources Minister Bahlil Lahadalia highlighted the growth of Indonesia's nickel downstream industry, emphasizing its reliance on foreign workers to accelerate progress, in his dissertation defense at the University of Indonesia (UI) on Wednesday.
The dissertation, titled “Policy, Institutions, and Governance of Equitable and Sustainable Nickel Downstreaming in Indonesia”, contended that using local workers could sometimes slow down operations.
He said Chinese workers were particularly efficient and capable of completing a smelter factory within 18 months, while domestic workers typically required two to three years for the same task.
This reliance on foreign labor has led to tensions between foreign and local workers.
To address this, Bahlil, during his tenure as Investment Minister, implemented measures to repatriate foreign workers when local workers were available to fill roles.
"Send them home. For example, let's say at Freeport, of the total workforce at Freeport, 98 percent are local workers," he said, as quoted by tempo.co.
However, he acknowledged that the transition could not happen overnight and stressed the need for a revised system that better incorporated local workers.
"Previously, it was a turnkey system, but now it is not,” Bahlil said.
“[Foreign workers] may enter, but those who have the skills that are needed. But if the skills are in the country, the priority is domestic.”
Bahlil also highlighted the importance of adequately preparing local workers to compete effectively with their foreign counterparts, particularly regarding work discipline.
"Don't drink your coffee longer than you work. That's about it. We sometimes have that problem," he said.
Bahlil’s doctoral degree at UI’s School of Global and Strategic Studies caused a buzz on social media, as he finished the program in only one year and eight months. Typically, it takes three years to finish the program.
Some UI alumni have questioned the validity of Bahlil’s doctoral degree.
UI spokeswoman Amelita Lusia said Bahlil took a "research stream" for his doctoral degree, so he did not need to take courses to complete the program.
