“Analysis: Safety standards under scrutiny after explosion in Morowali”, 10 January 2024

The occupational safety and health (OSH) standard at the nickel-focused Indonesia Morowali Industrial Park (IMIP) is under scrutiny after explosions blasted in Tsinghan subsidiary Indonesia Tsingshan Stainless Steel’s (ITSS) nickel furnace located in the industrial park. The deadly incident adds to the series of OSH incidents in the industrial park, raising concerns over its OSH regulation implementation.

The Central Sulawesi Regional Police Force stated that based on witness statements, there might have been a violation of [...] the Indonesian Criminal Code (KUHP) [...]

[...]In the end, ITSS accident prompted House of Representatives Commission VII to request for audits on all smelters in IMIP.

According to initial analysis of ITSS documents by an oversight team consisting of Manpower Ministry and Central Sulawesi Manpower Office officials, ITSS shows indications that they have not completed the occupational health and safety management system (OSHMS) audit required by Government Regulation No. 50/2012 for firms with more than 100 workers. However, ITSS responded that it has received the ISO:45001 OHSMS certification in 2018. Furthermore, a team member told Tempo that only Huayeu Nickel Cobalt has completed an OHSMS audit among firms that operate in IMIP.

The accident at the ITSS furnace was followed by a fire at a nickel smelter owned by Jiangsu Delong Nickel Industry subsidiary Gunbuster Nickel Indonesia, which happened at about 17.20 WITA on Dec. 28, 2023. The cause of the fire was a spark that burned plastic equipment and supplies in the smelter, according to the Central Sulawesi Regional Police Force. The next incident in IMIP was a mine excavation landslide that killed two workers at Sumber Permata Mineral’s nickel mine on Dec. 30, 2023. Moreover, he troubled Job Creation Law may have contributed to the OSH troubles afflicting IMIP facilities through deregulating provisions, which may have compromised safety standards, in a bid to attract more investors to Indonesia. Intertwined with the legislation’s potential impact is the government’s natural resources “downstreaming” mission, of which IMIP is part of for the country’s nickel industry. This could have also influenced the rate of accidents in the industrial park by creating urgency to achieve returns that encourages compromises in OSH.

A source at the Manpower Ministry stated that there has been continuous neglect of audits within the internal affairs of ITSS. Despite being established in 2014, the company has never conducted an audit of the occupational safety and health management system (SMK3).

[...]