Protest at China-backed nickel-smelting firm in Indonesia turns violent, with buildings and vehicles torched
- The demonstration involved 800 workers looking for a pay rise from PT Virtue Dragon Nickel Industry
- The company says its activities have been ‘paralysed’, as some of its heavy equipment and operational vehicles have been burnt
Some 600 police and military personnel were rushed to a nickel smelter project run by PT Virtue Dragon Nickel Industry (VDNI) in Konawe regency, Southeast Sulawesi province, before the situation was brought under control, police said.
Videos shared on social media showed buildings and a large truck engulfed in flames.
“What triggered [the violence] was that the Konawe Workers Protection Union wanted to meet with management to demand a pay rise and a change in the status of workers [who had worked for more than three years] to become permanent staff, but management failed to meet them,” said Southeast Sulawesi police spokesman Ferry Walintukan. “In the end, the demonstration descended into anarchy.”
VDNI is a subsidiary of Chinese firm Jiangsu Delong Nickel Industry. In its first operational phase, the firm received US$1 billion in financing from state-owned China First Heavy Industries for a nickel smelter, power plant and port in Konawe.
Since March, students have been holding demonstrations over the planned phased arrival of 500 Chinese workers at nickel-smelter projects in the regency – including VDNI and a neighbouring firm, PT Obsidian Stainless Steel (OSS) – accusing them of taking jobs away from locals during the coronavirus pandemic.
