PT Huadi Nickel-Alloy Indonesia (HNI), a Chinese-owned nickel smelting company operating in the Bantaeng Industrial Zone (KIBA), South Sulawesi, has suspended its operations as of July 15, 2025, due to challenging market conditions. The company also announced a mass layoff of workers as part of a restructuring effort, local media reported.
In an internal memorandum signed by Andi Adrianti Latippa, Head of HRGA & HSE, and Jos Stefan Hideky, CEO of PT HNI, the company confirmed that the shutdown would last indefinitely. Employees have been sent home pending further decisions from management.
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This decision comes as part of a wider downturn in Indonesia’s nickel industry, driven by the prolonged decline in nickel prices over recent months.
Mass protests broke out earlier this week as hundreds of workers staged a demonstration, blocking the company’s entrance on July 14. The workers expressed their frustration, accusing the company of conducting layoffs unilaterally.
The broader trend of production halts has been noted by the Indonesian Nickel Mining Association (APNI), which reports that several other smelters have also ceased operations or scaled back production due to shrinking margins. Among these are PT Indonesia Tsingshan Stainless Steel (ITSS), PT Gunbuster Nickel Industry (GNI), and PT Virtue Dragon Nickel Industry (VDNI).
Editing by Alexander Ginting
