Jakarta, Indonesia Sentinel — The United States Department of Labor (US DOL) has accused Indonesia’s nickel industry of engaging in forced labor practices, a claim that has prompted the Indonesian government to respond. The Indonesian Ministry of Energy and Mineral Resources (ESDM) has stated that it has yet to receive any reports of forced labor within the country’s nickel sector.
The allegations were outlined in the US DOL report titled Global State of Child and Forced Labor, published on September 5, 2024. The report highlighted concerns about labor practices in Indonesia’s booming nickel industry, which plays a critical role in global supply chains for electric vehicles.
Agus Cahyono Adi, the Head of the Bureau of Communications, Public Information Services, and Cooperation at the Ministry of Energy and Mineral Resources, emphasized that the ministry is coordinating with Indonesia’s Ministry of Manpower (Kemenaker) to investigate the report’s claims.
“Labor management falls under the jurisdiction of the Ministry of Manpower, so we are waiting for their findings. We will then present evidence regarding the classifications, indicators, and details used in the U.S. report,” Agus said on Friday, September 27, as quoted from CNN Indonesia.
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Agus pointed out that while the Ministry of Manpower oversees the monitoring and enforcement of workers’ rights, the Ministry of Energy and Mineral Resources ensures that employers in the energy sector comply with all regulations. “As the employer, we make sure that workers’ rights are upheld in accordance with Ministry of Manpower regulations,” he added.
Thus far, the Ministry of Energy and Mineral Resources has not received any formal reports of forced labor in Indonesia’s nickel industry.
Allegations of Forced Labor still Indications
The Ministry of Manpower, meanwhile, has pledged to investigate the allegations. Yuli Adiratna, Director of Labor Norms Enforcement at the ministry, clarified that the U.S. report is based on indications rather than confirmed findings, but the Indonesian government still views it as a serious issue.
“We will certainly investigate. The U.S. report highlights indications, and while they are not conclusive, it is crucial for the government to ensure that such practices are not occurring,” Yuli stated during a press briefing in Central Jakarta on Thursday, September 26, 2024.
The Indonesian government’s response to these allegations comes as the country continues to position itself as a major player in the global nickel market, a vital component for electric vehicle batteries. Any negative findings related to labor practices could affect the industry’s reputation and Indonesia’s standing in global trade.
(Raidi/Agung)
