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USA: Classification of RI nickel as “forced labor” does not lead to sanctions – Economy

USA: Classification of RI nickel as “forced labor” does not lead to sanctions – Economy

The US Department of Labor has placed Indonesian nickel on a list of commodities where it has “reason to believe” forced labor and child labor are involved. However, the US Embassy says that its inclusion on the list does not imply sanctions.

The findings, released on September 5 in a 330-page report by the ministry's International Labor Affairs Bureau (ILAB), also include alleged forced labor in the production of crude palm oil (CPO) from Indonesia and child labor in seven different commodities.

A spokesman for the US Embassy said The Jakarta Post on September 12 that the results would have “no sanctions or trade implications.”

The report lists 82 countries where child labour or forced labour is suspected to be used in the production of 204 types of goods.

“The [list’s] The main objectives are to raise public awareness of forced labour and child labour and to promote efforts to combat them,” the spokesman said.

The report is published annually, but Indonesian nickel – a raw material that Jakarta has promoted in recent years as a cornerstone of the country's industrial development, particularly for building an electric vehicle industry – was only included in the 2024 update.

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The spokesman said the ILAB had concluded that some Chinese migrant workers were working under forced labor conditions in Indonesian nickel industrial parks.

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