Massive burns of Chinese nickel smelter in Sulawesi, this is the trigger



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Jakarta, CNBC Indonesia – A nickel refinery or smelter owned by a Chinese company, PT Virtue Dragon Nickel Industry (VDNI) in Morosi District, Konawe Regency, Southeast Sulawesi, was set on fire by a mob on Monday (12/14/2020). This fire occurred when the workers held a demonstration.

Resort Police Chief (Kapolres) Konawe Deputy Chief Police Commissioner (AKBP) Yudi Kristanto explained the chronology of the riots until the burning of the nickel refining plant in Morosi district, Konawe Regency, was completed.

He said this incident started with a multi-mass demonstration from outside the factory on Monday morning. They urged the company to appoint workers who have worked for more than three years as permanent employees.

“At first, the protesters and workers were provoked and joined in as well,” he told CNNIndonesia.com on Tuesday (12/15/2020).

A mass of workers were damaged and set on fire at the Virtue Dragon Nickel Smelter during a demonstration on Monday (12/14/2020) in Morosi Sub-District, Konawe District, Southeast Sulawesi.  (Screenshot)Photo: Mass of workers damaged and burned the Virtue Dragon nickel smelter during a demonstration on Monday (12/14/2020) in Morosi Sub-District, Konawe District, Southeast Sulawesi. (Screenshot)
A mass of workers were damaged and set on fire at the Virtue Dragon Nickel Smelter during a demonstration on Monday (12/14/2020) in Morosi Sub-District, Konawe District, Southeast Sulawesi. (Screenshot)

Other information obtained by CNNIndonesia.com, the protesters who carried out the rally were the Konawe Regency Labor Protection and Union (SPTK) which joined the Regional Executive Board of the Southeast Sulawesi National Trade Union Federation.

They asked the company for clarity on the specific working time contract (PKWT) of VDNI employees with a working period of more than 36 months, to be appointed as permanent employees in PT VDNI.

They also require a salary increase for workers who have worked for more than one year in accordance with Government Regulation (PP) Number 78 of 2015 Article 42.

According to the Chief of Police, the company has provided salaries to its employees in accordance with the regional minimum wage (UMR). “The salary is in accordance with the UMR, so there is no problem,” he added.

The demonstration initially took place peacefully at the entrance to PT VDNI. However, clashes broke out during the day as crowds made their way into the factory area.

A mass of workers were damaged and set on fire at the Virtue Dragon Nickel Smelter during a demonstration on Monday (12/14/2020) in Morosi Sub-District, Konawe District, Southeast Sulawesi.  (Screenshot)Photo: Mass of workers damaged and burned the Virtue Dragon nickel smelter during a demonstration on Monday (12/14/2020) in Morosi Sub-District, Konawe District, Southeast Sulawesi. (Screenshot)
A mass of workers were damaged and set on fire at the Virtue Dragon Nickel Smelter during a demonstration on Monday (12/14/2020) in Morosi Sub-District, Konawe District, Southeast Sulawesi. (Screenshot)

The police had fired tear gas, but around afternoon the crowd managed to break through the security barricade and into the factory area. The mob burned dozens of dump trucks and heavy equipment excavators.

The period was spiraling out of control just before sunset, they destroyed, dumped and burned the factory premises.

Konawe Regent Kery Syaiful Konggoasa, Southeast Sulawesi Regional Police Chief, Inspector General Yan Sultra Police Indrajaya and Commander 143 Haluoleo Brigadier General Jannie Aldrin Siahaan took to the field to calm the crowd.

The management of the nickel smelting company, PT VDNI, also spoke about this. According to the management, an in-depth internal investigation was carried out to follow up on the demonstrations that led to disturbances in the factory.

PT VDNI and OSS spokesperson Dyah Fadilat in an official statement said that on Tuesday, December 15, 2020, efforts were made to mediate between employee representatives and VDNI management.

At the meeting of Kerry Saiful Konggoasa Regent, Deputy Regent Gusli Topan Sabhara, Southeast Sulawesi Regional Police Chief, Inspector General of Police Yan Sultra Indrajaya, Danrem 143 Haluoleo, Brigadier General Jannie Aldrin Siahaan, deplored the riots.

“All parties regret the incident that caused damage and harmed many parties, both companies, employees whose work was disturbed, the neighbors of the factory who were affected by their daily activities,” he said, on Tuesday (12/15 / 2020).

Dyah said the company would take firm action through legal channels by reporting damage and disturbance incidents that occurred in the factory area to the Southeast Sulawesi Regional Police for an investigation in accordance with applicable law.

The riots brought the company’s activities to a standstill as the factory’s support team was severely damaged and some 40 heavy equipment and operational vehicles belonging to the company caught fire.

He said that the president director of PT VDNI and PT OSS, Tony Zhou Yuan, expressed his sadness for the events that occurred. Tony said that since VDNI’s presence in Morosi, he has planned long-term programs, one of which is to build better public facilities, despite all the limitations that were present at the beginning.

Even during the Covid-19 pandemic that occurred this year, the company always did its best to provide the necessary medical equipment, not only for the employees, but also for the residents of the factory.

“Pak Tony is also concerned that this incident may have an impact on investors’ doubts about coming to invest in Morosi, because PT VDNI plans to expand the factory area and requires investor support to implement the plan. In fact, this phase III investment plan will have a very good impact on absorbing more local workers, “said Dyah.

Regarding the issue that circulates that the company never increases employee salaries, management emphasizes that this issue is not true.

“Companies always follow the rules related to the current salary or salary system. There is even a path of achievement to become permanent employees that is for employees who have good performance,” he explained.

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