Violence at Chinese-owned nickel smelter in Indonesia raises alarm

Analysts say government, company action on labor is essential to prevent spread

20230123 a nickel smelting plant in North Morowali

Police in Indonesia take up positions on Jan. 16, two days after deadly violence at a nickel smelting plant on the island of Sulawesi. The country hopes its vast reserves of the metal can help it build a domestic electric vehicle industry. © Morowali Police/AFP/Jiji

AMY CHEW, Contributing writer, and ISMI DAMAYANTI, Nikkei staff writer

KUALA LUMPUR/JAKARTA -- Recent clashes at a Chinese-owned nickel smelting facility in Indonesia are likely to spread to other parts of the country if the government and Chinese owners fail to address issues of safety, analysts say.

Protests, some violent, have occurred sporadically in recent years on the mineral-rich island of Sulawesi, which is experiencing an investment boom for mining nickel, a key ingredient in electric vehicle batteries. Indonesia is keen to leverage its world-leading reserves of the metal and develop a domestic EV industry.

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