Morowali Industrial Park

02°49′48″S 122°09′36″E / 2.83000°S 122.16000°E / -2.83000; 122.16000

The port area of the park

The Indonesia Morowali Industrial Park (IMIP) is an industrial park hosting primarily nickel-related industries in Morowali Regency, Central Sulawesi, Indonesia. It is the largest nickel processing site in Indonesia, which is the world's top nickel producer.[1] In 2023, Wired magazine called it "the world's epicenter for nickel production."[2] The park is a joint venture between Indonesian mining company Bintang Delapan Group and the Chinese firm Tsingshan Holding Group.[3][2]

IMIP's activities have seriously polluted the local environment and disrupted nearby communities. Workers and advocacy organizations report poor working conditions, with a number of deaths and injuries from industrial accidents. The park employs about 81,000 people.

Background

See also: Nickel mining in Indonesia

Indonesia has the world's largest nickel reserves. Nickel is used to manufacture lithium-ion batteries used in electric vehicles, and Indonesia is positioned to be a key supplier of the mineral for the booming electric vehicle battery market. The country banned export of unprocessed nickel ores around 2013,[2] and has signed several deals with battery manufacturers.[4]

In 2022, Indonesia produced 1.6 million tons of nickel. This was nearly half of world production.[2] Also in 2022, the administration of president Joko Widodo relaxed environmental and worker safety regulations to attract foreign investment.[2]

Description

The industrial park is located in Bahodopi district of Morowali Regency, Central Sulawesi.[5] It covers 3,000 hectares,[2] and is served by a seaport, an airport, and a 2 GW coal power plant.[6] It is operated by PT Indonesia Morowali Industrial Park.[7]

There were reportedly 18 companies operating at IMIP with a total investment of USD 15.3 billion in October 2022, with the park's management predicting 40 companies by 2025.[8] By December 2024, the total investment was claimed to have reached USD 34.3 billion.[9] The park's estimated total capacity for stainless steel production was 3 million metric tonnes per year in 2020.[10] In 2019, IMIP had plans to develop electric vehicle battery plants.[11] It generated USD 6.6 billion in exports for Indonesia in 2019.[6]

History

Morowali had been the site of a nickel mining operation by Vale's subsidiary Inco since 1968.[12] In August 2013, the Indonesian Ministry of Industry announced plans to develop a 1,500 hectare nickel-oriented industrial park in Morowali.[13] A MoU for the USD 1.5 billion project was signed between Tsingshan Holding Group and Bintang Delapan Group in October 2013,[14] and the first stone for the industrial park's construction was placed by Minister of Industry Saleh Husin on 5 December 2014.[15] Companies began to operate starting in April 2015, with president Joko Widodo inaugurating a smelter on 28 May 2015.[16][17]

In 2018, it was estimated that IMIP produced 50% of Indonesia's nickel products.[5]

On 24 December 2023, an explosion occurred at a Tsingshan-owned nickel smelter inside the facility, killing at least 18 people and injuring 44 others. The dead were identified as ten Indonesians and eight Chinese workers.[18] By 31 December, two more workers had died to their injuries.[19]

Impact

Local

Environmentalists report that pollution from IMIP has destroyed fish populations and local forests. Local residents also experience frequent disruptions in power, phone, and internet services due to oversaturation. The population has grown very quickly due to the workers, sanitation services have not been provided, and there are open sewers.[2] Large numbers of commuting workers have also overloaded local roads and caused daily traffic jams lasting hours at a time.[20]

The regency government of Morowali reported an increase of municipal government revenues from Rp 180 billion in 2018 to Rp 600 billion in 2022, of which 80 percent were attributed to IMIP.[21] On paper, Morowali Regency's GDP per capita became the highest in Indonesia at 927.2 million (~USD 60,000) in 2023,[22] however, activists claimed that around 95 percent of this were remitted to other regions of Indonesia or abroad.[23]

Workforce

There were around 28,500 employees working at IMIP in August 2018, of which around 3,100 were foreign workers, and an additional 50,000 indirect jobs were estimated to be related to the industrial park.[5] In February 2023, approximately 81,000 people worked there, including around 10,700 foreign workers, mostly from China.[3] Many workers report working 15-hour days for $25/day with no days off.[2] Indonesian workers have also complained about how foreign (i.e. Chinese) workers receive higher pay, and communication problems have caused further frustrations.[24]

Workers and advocacy organisations report unsafe working conditions in some smelters at IMIP.[4] Deaths and injuries are frequently reported, and pollution has caused respiratory illness and eye problems. One report found that ten people had died at the smelter between 2020 and 2023. Two workers were killed on the fourth day of the strike.[4] A government official said they had little power to enforce safety regulations in the industry.[4]

In 2023, some workers filed a lawsuit against the company over poor working conditions.[3]

References

  1. ^ Florene, Ursula (15 January 2021). "Indonesia's EV battery aspirations unearth mining waste problems". KrAsia (in Indonesian). Archived from the original on 20 December 2022. Retrieved 11 September 2021.
  2. ^ a b c d e f g h Yeung, Peter. "Workers Are Dying in the EV Industry's 'Tainted' City". Wired. ISSN 1059-1028. Archived from the original on 3 March 2023. Retrieved 5 March 2023.
  3. ^ a b c "Chinese workers 'suffering' in Indonesia's nickel factories, complaint says". South China Morning Post. 3 March 2023. Archived from the original on 3 March 2023. Retrieved 3 March 2023.
  4. ^ a b c d "Nirwana posted videos of working in an Indonesian nickel mine nearly every day. They went viral after she died". ABC News. 18 February 2023. Archived from the original on 3 March 2023. Retrieved 5 March 2023.
  5. ^ a b c "Jelajah Bahodopi Morowali, Kawasan Tambang PT IMIP, Intip Foto-fotonya". Tribun Palu (in Indonesian). 8 April 2021. Archived from the original on 10 September 2021. Retrieved 10 September 2021.
  6. ^ a b "Terus meningkat, ekspor dari kawasan industri Morowali diramal capai Rp 168,2 triliun". Kontan (in Indonesian). 1 November 2020. Archived from the original on 9 February 2023. Retrieved 10 September 2021.
  7. ^ "Morowali jadi sasaran pabrikan baja China". Kontan (in Indonesian). 16 June 2017. Archived from the original on 9 February 2023. Retrieved 11 September 2021.
  8. ^ "Bakal Makin Ramai, 3 Tahun Lagi akan Ada 40 Tenant di Kawasan Industri Morowali". Kontan (in Indonesian). 12 October 2022. Archived from the original on 26 October 2022. Retrieved 26 October 2022.
  9. ^ Hidayat, Andi (18 December 2024). "Investasi PT IMIP Sepanjang 2015-2024 Tembus US$ 34,3 Miliar". detikfinance (in Indonesian). Retrieved 20 December 2024.
  10. ^ "Morowali Industrial (IMIP) merajai produksi nikel olahan di Indonesia". Kontan (in Indonesian). 20 October 2020. Archived from the original on 10 September 2021. Retrieved 10 September 2021.
  11. ^ "Tsingshan dan Huafon Investasi US$ 3 Miliar di RI". investor.id (in Indonesian). Archived from the original on 11 September 2021. Retrieved 11 September 2021.
  12. ^ "VALE INDONESIA: Aksi Anarkis di Morowali Diyakini Tak Pengaruhi Saham". Bisnis.com (in Indonesian). 7 February 2012. Archived from the original on 10 September 2021. Retrieved 10 September 2021.
  13. ^ "Pemerintah Bangun Kawasan Industri Rp 7 T". kemenperin.go.id (in Indonesian). Investor Daily. Archived from the original on 10 September 2021. Retrieved 10 September 2021.
  14. ^ "Morowali, Langkah Awal Menyebar Industri ke Luar Jawa". Bisnis.com (in Indonesian). 12 December 2014. Archived from the original on 10 September 2021. Retrieved 10 September 2021.
  15. ^ "Pembangunan Kawasan Industri Morowali Mulai Dikerjakan". investor.id (in Indonesian). 5 December 2014. Archived from the original on 10 September 2021. Retrieved 10 September 2021.
  16. ^ "Telkom Dukung Kawasan Industri Berbasis Digital". Berita Satu (in Indonesian). 21 December 2015. Archived from the original on 10 September 2021. Retrieved 10 September 2021.
  17. ^ "Jokowi Resmikan Smelter Nikel di Sulawesi Tengah". liputan6.com (in Indonesian). 29 May 2015. Archived from the original on 10 September 2021. Retrieved 10 September 2021.
  18. ^ "Death toll rises to 18 in furnace explosion at Chinese-owned nickel plant in Indonesia". Associated Press. 26 December 2023. Retrieved 26 December 2023.
  19. ^ "Korban Tewas Ledakan Tungku Smelter PT ITSS Morowali Jadi 20 Orang". CNN Indonesia (in Indonesian). 31 December 2023. Retrieved 1 January 2024.
  20. ^ "Kontroversi Macet di Kawasan Industri IMIP: Siapa yang Bertanggung Jawab?". Morowali Info (in Indonesian). 24 May 2023. Retrieved 20 December 2024.
  21. ^ SultengTerkini, Redaksi (31 March 2023). "PAD Morowali Naik 300 Persen di 2022, 80 Persen Kontribusi dari PT IMIP". SultengTerkini (in Indonesian). Retrieved 20 December 2024.
  22. ^ "Airlangga: Smelter HPAL Neo Energy Diharapkan Mendukung Transisi Energi". Media Nikel Indonesia (in Indonesian). 17 September 2024. Retrieved 20 December 2024.
  23. ^ "Ada Industri Nikel, 95 Persen Pendapatan Daerah Morowali Justru Keluar". CNN Indonesia (in Indonesian). 25 September 2023. Retrieved 20 December 2024.
  24. ^ Saturi, Sapariah (27 February 2023). "Kala Pemerintah Gencar Kembangkan Industri Nikel, Lingkungan dan Masyarakat jadi Perhatian?". Mongabay.co.id. Archived from the original on 5 March 2023. Retrieved 5 March 2023.