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22 Feb 2021

Indonesia: 307 workers left unable to access health & social insurance after PT Smelting stopped paying workers' premiums

Three hundred seven workers were unable to access health and social insurance after PT Smelting allegedly failed to pay its workers Health Social Security Administering Bodies (BPJS Kesehatan) and Employment Social Security Administering Bodies (BPJS Ketenagakerjaan) premiums.

It is alleged that the failure to pay the premiums was prompted by a failed collective bargaining between PT Smelting and the workers' association, Pimpinan Unit Kerja Serikat Pekerja Logam Federasi Serikat Pekerja Metal Indonesia (PUK SPL FSPMI). Subsequently, PT Smelting dismissed the workers who participated in the strike. Since then, the company stopped paying the workers' BPJS Kesehatan insurance premium and requested the deactivation of the workers' BPJS Ketenagakerjaan membership.

Business & Human Rights Resource Centre invited PT Smelting, as well as its majority shareholders, Mitsubishi Materials Corporation and Mitsubishi Corporation RtM Japan Ltd, to respond to allegations of labour rights violations. PT Smelting did not respond. Mitsubishi Corporation RtM Japan Ltd and Mitsubishi Materials Corporation's responses are linked below.

Company Responses

Mitsubishi Corporation RtM Japan Ltd. View Response
Mitsubishi Materials (part of Mitsubishi Group) View Response
PT Smelting

No Response