The Indonesian Labor Puzzle in Chinese-Invested Nickel Industrial Parks: Skills, Exploitation, Ethnic and Geopolitical Frictions

On 10 September 2024, the US Department of Labor added Indonesian nickel to the list of products using forced labor, exerting significant pressure on the Indonesian government’s grand plans of becoming a leading node in producing Electric Vehicle batteries. The announcement came after many reports on working conditions and, most importantly, fatal accidents in Chinese smelters. However, the number and severity of these accidents are sadly in line with the Indonesian average smelter plant. Using a mix of primary and secondary data, this study examines the main labor dynamics at play in Chinese-invested industrial parks in Indonesia. On the one hand, we have the image of happy migrant workers, who move to some of these parks because of the availability of better and more stable wages. Vocational schools being established, as well as several bespoke facilities like mosques and health and safety training. On the other hand, especially in plants that are out of the limelight of media attention, exploitation, illegality, and harsh work conditions, especially for Chinese workers, take place. This is in the context of Indonesia, a country with pre-existing significant anti-China sentiment, where harsh and uneven work conditions also reignite past ethnic frictions. The study also discussed the recent international and domestic initiatives to tackle the issue, analyzing the role of intermediate institutions like business associations and advocacy groups, concluding that multi-stakeholder cooperation is necessary, but until proper health and safety mechanisms are embedded in policies and adequate monitoring, this will only be window-dressing. It concludes by showing how labor disputes are now at the very center of US-China tensions.