Indonesia Enhances Oversight of Labor Practices Following US Report on Forced Labor in EV Supply Chain

An Indonesian Manpower Ministry official announced on Friday that the agency is increasing oversight of employment practices following a report from the US Department of Labor. The report listed Indonesia among countries producing goods via child labor and forced labor, specifically highlighting the production of nickel used in the manufacture of Electric Vehicles (EV) by forced labor (Reuters report).

Yuli Adiratna, Director of Labor Inspection, stated that the Ministry plans to leverage the US Department of Labor’s findings to strengthen the oversight of regulations and international standards within the commodities sector. Indicators of forced labor identified include forced recruitment, physical or sexual violence, withholding of wages, excessive working hours, and abuse of vulnerability.

The engagement in forced labor for commodity production contravenes both Indonesian domestic laws and international statutes. The Manpower Act of Indonesia prescribes a workweek of 40 hours and ensures that employees receive a wage adequate for their living needs. Additionally, policies have been established regarding minimum wages, overtime pay, and wage payment systems. Similar protections are mandated by Article 23 of the Universal Declaration of Human Rights, alongside the Forced Labor Convention of 1930 and its 2014 protocol, which Indonesia has ratified.

Adiratna underscored the necessity of adhering to these standards to mitigate the risk of abusive labor practices and ensure worker protection. The Ministry’s enhanced vigilance aims to align Indonesian labor practices with international expectations and restore confidence in its commodity production sectors.