Two Fatal Incidents at PT Dexin Steel Indonesia Highlight Urgent Need for Improved Worker Safety Standards

Sulawesi, Indonesia – October 26, 2024 – Two tragic fatalities have been reported at PT Dexin Steel Indonesia (DSI), a tenant company operating a steel production facility in the Indonesia Morowali Industrial Park (IMIP) area in Sulawesi Island, Indonesia. Local sources indicate that an explosion occurred on the afternoon of October 25, 2024, in a nickel waste pool at the facility, resulting in the death of Laode Gunawan, an Indonesian worker who was trapped in the crane he operated. His colleague, Bong Sui Kian, sustained injuries and was transported to the IMIP clinic for treatment. 

The following day, as emergency repairs commenced, another worker – a Chinese national – suffered severe dehydration while conducting crane repairs, and was also taken to the IMIP clinic. Unfortunately, the worker later succumbed to his injuries, and was found to be covered in burns on his back according to local sources.

Photos of the facility in question

PT DSI is a joint venture comprising PT IMIP, Chinese steel producer Delong Group, and Shanghai Decent Investment; the latter two represented by their overseas subsidiaries Delong Steel Singapore Project and Hanwa Singapore respectively.

Local officials have spoken out about the persistent issues of industrial accidents in the region, and the troubled record on workers’ safety. Anwar Hafid, a candidate for governor of Central Sulawesi, expressed his condolences in a statement after the incident, and emphasized the need for PT DSI to fully implement the Worker Safety and Health Management System (K3) and to elevate labor standards across the facility.

The recent incidents follow a troubling trend of industrial accidents in the Sulawesi area. In Dec 2023, an explosion at PT Indonesia Tsingshan Stainless Steel (PT ITSS), another tenant at IMIP, resulted in the deaths of 21 workers. Another explosion on June 13, 2024 at the same facility injured two individuals. According to Indonesian NGO WALHI, ambulances are frequently seen transporting injured workers from these facilities.

As Sulawesi emerges as a key hub for nickel production – critical for electric vehicle batteries and steel – the influx of heavy foreign investment from key partners like China has raised significant concerns regarding worker safety and labor rights. 

With global demand for nickel on the rise, we urge all stakeholders—including investors, governments, and industry leaders—to prioritize worker safety and well-being of workers. It is essential to foster a sustainable mining environment that does not compromise human lives. A recent report by CLW in December 2023 emphasizes the numerous challenges faced by workers, underscoring the urgent need for comprehensive actions to support the sustainable and responsible growth of Indonesia’s nickel industry while protecting both local and migrant laborers.

 

Prepared by China Labor Watch

Oct. 28