Summary: The Indonesia Morowali Industrial Park (IMIP) was initially built for the purpose of developing nickel pig iron and stainless-steel production, but with the rise of the electric vehicle market, the park’s focus expanded to take advantage of the emergence of nickel as a critical mineral in the renewable energy transition. Construction of the park, in Morowali Regency, Central Sulawesi, began in 2013, and it is now the largest nickel-based industrial area in Indonesia, with 11 smelters. However, this massive development has a significant ecological footprint through submarine wastewater disposal and air pollution from coal-generated power.

Moreover, it has become one of the deadliest worksites in the world primarily operated and funded by Chinese companies, with at least 56 deaths documented since 2016.

Companies: PT Indonesia Morowali Industrial Park is a joint venture between Shanghai Decent Investment Co Ltd (a subsidiary of Tsingshan Holding Group), 49.7%; PT Bintang Delapan Group, 25.3%; and PT Sulawesi Mining Investment, 25%.

Companies in the park include direct subsidiaries of Tsingshan, such as PT Indonesia Tsingshan Stainless Steel and many joint ventures in which Tsingshan is a majority participant. These include companies such as Indonesia Ruipu Nickel and Chrome Alloy and PT GCNS - Indonesia Guang Ching Nickel and Stainless Steel Industry.

Many other tenants are majority Chinese-owned JVs, such as PT Dexin Steel Indonesia, PT QMB New Energy Materials, PT CNGR Ding Xing New Energy, PT Huayue Nickel Cobalt and PT Ocean Sky Metal Industry.

Financing: There have been several phases of financing related to the construction of coal power plants to power a nickel smelting complex within the park. In 2013, China Development Bank extended a USD 384 million loan to Tsingshan Holding Group for Phase 1. In 2015, China Eximbank, Industrial and Commercial Bank of China, and Bank of China gave out a 700 million USD syndicated loan to Guangdong Guangxin Holdings Group Ltd. for Phase 2 of the project. In 2015, CDB also lent another 574 million USD to Tsingshan for Phase 3 of the project. Finally, in 2017, China Eximbank led a 320 million USD syndicated loan to PT. Indonesia Ruipu Nickel And Chrome Alloy (a joint venture majority owned by Tsingshan) for Phase 4 of the project.

In 2021, China Eximbank, Agricultural Bank of China, CITIC Bank and China Minsheng Bank gave out another syndicated loan for a nickel smelting project, lending 760 million in total to Huayue Indonesia, another Chinese company at the park.

Project Impacts

• Water Pollution and Biodiversity Loss: Pollution and wastewater runoff from the park have impacted water quality, decreasing the numbers of fish and other marine life and forcing fishers to travel further out to sea. A report estimates that the park generates 11.5 million tons of nickel smelting tailings (waste) a year. Just in 2025, there were three separate tailings storage failures, leading to toxic flow into the nearby Bahadopi River and then into the ocean and the deaths of five workers. Proposed plans for deep-sea tailings disposal raised serious environmental concerns but applications were later withdrawn by the company.
• Air Pollution: There is evidence of air pollution causing increased rates of respiratory illnesses in the area, which rose 26% in the central Sulawesi area (where Morowali is located) from just 2023 to 2024.
• Deforestation: The area in the Morowali concessions area is 77% primary rainforest. Satellite measurements have confirmed heavy deforestation in the surrounding area of the park, with mining-related deforestation amounting to more than 12,300 hectares by 2025, with post-mining restoration taking place in only 5% of said area.
• Militarisation: The IMIP is designated a National Strategic Project (NSP), and to protect the investment, the police presence has already increased in the vicinity, and an additional military presence is planned.
• Labour: There have been at least 45 accidents from 2016 to 2024 at Morowali, leading to at least 56 deaths. This includes an explosion at a nickel smelter which killed 21 workers. In addition to this, many workers suffer from exposure to conditions that cause and aggravate many diseases, especially respiratory ones. Despite all this, only one clinic provides treatment for the over 90,000 workers at Morowali. Despite these massive health risks, workers report no credible signs of improvement. Beyond these clear signs of dangerous work conditions and insufficient safety measures, workers also face job instability and low wages.
• Local Community: Despite the jobs created in the park, most local people remain engaged in agriculture as they do not have the skills or desire to work in industrial projects. A decline in government investment in agricultural projects, coupled with environmental impacts from the IMIP, has caused hardship for farmers.