On April 16th, 2025, over 100 Chinese construction workers at the PT Mitra Murni Perkasa (MMP) RKEF nickel smelting project in Balikpapan, East Kalimantan in Indonesia went on strike to protest unpaid wages. The workers reportedly have not been paid for four to five months. Many workers are owed wages since January, and several have not received wages since December.
Photo credit: Douyin
Some workers have not been paid since December
Photo credit: Douyin
The construction project is contracted by China 19th Metallurgical Group Corporation Limited (MCC19), a subsidiary of the state-owned enterprise China Minmetals. According to online information, MCC19 is engaged in industrial and civil construction projects both domestically in mainland China and internationally. For over a decade, Chinese state-owned enterprises have been heavily involved in construction projects overseas as part of the country’s Belt and Road Initiative.
Videos of the strike in Balikpapan were posted on social media, with messages and comments from others pointing out the prevalence of unpaid wages among Chinese companies and contractors abroad.
According to the International Labor Organization (ILO), the withholding of wages could be an indicator of forced labor, especially if wages are systematically and deliberately withheld to compel the worker to continue working.
China Labor Watch’s 2023 report “Compounding Vulnerabilities: Chinese Workers in Indonesia” on Chinese investment in Indonesia revealed exploitative labor conditions including the confiscation of passports, restriction of movement, withholding of wages and physical violence among other issues. Our report describes how the use of subcontracting in the construction sector leads to workers being especially vulnerable to wage arrears.
China Labor Watch demands the immediate payment of outstanding wages owed to Chinese construction workers at the PT MMP nickel smelting project. Responsible companies and contractors should be held accountable and take steps to prevent future incidents, and ensure they are abiding by local and international labor standards.
