Key facts
- A report indicates a rise in alleged human rights and environmental abuses linked to China's critical minerals supply chains.
- Indonesia has recorded the highest number of these allegations globally, primarily due to its nickel sector.
- Serious labor violations, including excessive working hours and wages below the legal minimum, have been reported at a Chinese-invested nickel smelter in Indonesia.
- The Business & Human Rights Resource Centre documented 127 allegations of abuse linked to transition mineral mining in Asia-Pacific between 2010 and 2024.
- Local communities and workers are identified as the most impacted groups by these alleged abuses in the region.
Allegations of human rights and environmental abuses linked to China's critical minerals supply chains are increasing, with Indonesia experiencing more such incidents than any other country due to its expanding nickel sector, according to a recent report. The Business & Human Rights Resource Centre documented 127 allegations of abuse related to transition mineral mining in the Asia-Pacific region between 2010 and 2024, with Indonesia accounting for 45 of these.
Local communities and workers have been identified as the most affected groups by these alleged abuses. Specific concerns have been raised regarding PT Huadi Nickel Alloy Indonesia, a Chinese-invested nickel smelter, where workers have reportedly been subjected to excessive working hours, with some months reaching up to 372 hours, significantly exceeding Indonesia's legal limit. Wages for some employees have also allegedly fallen below the legal minimum.
Further accusations include forcing workers to clean dangerously hot furnaces and preventing Muslim employees from attending Friday Prayers. Indonesia's own Labor Inspectorate has confirmed that overtime pay was underpaid for 20 workers at the facility. The legal-aid organization LBH Makassar has formally submitted a case to Indonesia's National Commission on Human Rights, highlighting these issues.
The report underscores that while foreign embassies can be alerted, the responsibility for addressing these labor violations lies with Indonesian institutions, including the Labor Inspectorate, courts, and the Ministry of Manpower. The analysis also points out that the global rush for minerals essential for the energy transition is having a significant negative impact on workers, Indigenous Peoples, local communities, and human rights defenders in the Asia-Pacific region.