Tuesday, April 16, 2024

China asked to improve investment governance in Indonesian smelter industry

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Audina Nur




Minister of Industry Agus Gumiwang Kartasasmita says he has urged the Chinese government to assess and enhance the governance of Chinese smelter industries in Indonesia.       Agus conveyed the issue during a meeting with the Chinese Minister of Industry, who recently visited the Indonesian Ministry of Industry.

“I conveyed this firmly to the Chinese Minister of Industry because almost all investors in these smelter projects are Chinese State-owned Enterprises. Therefore, the responsibility of the government is still significant,” he told reporters in Jakarta on Wednesday, January 3, 2024.

On the occasion, Agus also criticized the process of replacing foreign workers in Chinese-owned processing plants, while citing that many new incoming workers do not fully understand local conditions and culture in Indonesia.

“Since last November, I have requested for strengthened supervision and control over smelter companies, especially those from China,” he said.

Regarding the recent explosion at the nickel processing plant or smelter in the Morowali Industrial Park (IMIP), Central Sulawesi, the Ministry of Industry will impose sanctions on PT Indonesia Tsingshan Stainless Steel (ITSS) if they are found to have violated the standard operating procedures (SOP). Agus stated that sanctions would be applied based on the extent of the errors revealed in the ongoing investigation.

“Regarding the [sanctions] in the form of business permit suspension, of course, we will assess the extent of responsibility related to the management,” said Agus.

The Ministry has deployed a team to comprehensively evaluate management governance, operational procedures, and disaster handling at PT ITSS, as operational safety is a commitment required for the issuance of industrial business permits.

Criminal sanctions fall under the jurisdiction of law enforcement institutions and are handled by the police. Health and safety investigations at PT ITSS are also being conducted by the Ministry of Manpower.

Audina Nur






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