Indonesia says ‘strong indication’ of safety violation led to fire at Chinese-owned nickel plant that killed 21 people

A fire broke out on December 24 at a furnace in a smelter operated by Tsingshan Stainless Steel Indonesia, located in the country’s largest nickel hub, the Indonesia Morowali Industrial Park (IMIP).

There was a strong indication of standard procedure violation and negligence in the implementation of safety requirements that allegedly led to the fire incident, Manpower Minister Ida Fauziyah said in a statement on Tuesday.

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She did not elaborate on the suspected violations.

In the same statement, Central Sulawesi police chief Agus Nugroho said the police have launched an investigation into the cause of the fire.

The police and two ministries have been ordered to carry out checks on the sites by Coordinating Minister for Investment and Maritime Affairs Luhut Panjaitan

Indonesia, the world’s largest nickel producer, has banned exports of unprocessed nickel ore as it moves to boost domestic smelting and processing, but the sector has suffered several fatal incidents in recent years.

Pandjaitan called for law enforcement to take firm action to avoid similar incidents.

“We have to show that we do need investment, but they have to comply with regulations in our country. They cannot ignore the rules,” Luhut said.

Indonesia probes Chinese-owned nickel plant after blast kills 8 Chinese workers

IMIP spokesperson Dedy Kurniawan said the companies within the industrial estate comply with government regulations.

The incident, which came just weeks ahead of an election, showed the hidden costs that have come with the breakneck expansion of Indonesia’s nickel industry.

Encouraged by a ban on ore exports, the country has received billions of dollars of investment in processing facilities largely owned and operated by Chinese firms.

Nickel is a battery metal and key to the energy transition.

“We have to show that we do need investment, but they have to comply with existing regulations in our country,” Panjaitan said in a statement.

“Don’t ignore these rules.”

The expansion of the industry has seen Indonesia boost its share of global nickel supply to more than 50 per cent, making the metal a key plank of incumbent President Joko Widodo’s drive to add more value to its commodity exports.

But the facilities have been the site of a series of accidents, while also drawing scrutiny for their carbon intensive coal-based energy supply.