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GNI cuts staff as Indonesia nickel sector worries grow

JAKARTA, thekabarnews.com—Job cuts and rising debt pressure at PT Gunbuster Nickel Industry (GNI) have sparked fresh concerns over job security and the financial durability of Indonesia’s...

Kang Nchus

August 8, 2026 2 Min Read

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JAKARTA, thekabarnews.com—Job cuts and rising debt pressure at PT Gunbuster Nickel Industry (GNI) have sparked fresh concerns over job security and the financial durability of Indonesia’s fast-growing nickel-processing industry.

Reports surfaced in early August 2026 that the Chinese-backed company planned to dismiss about 1,900 workers at its nickel smelter in North Morowali, Central Sulawesi.

GNI had not published an official announcement confirming that precise figure or an August implementation date as of August 8.

Available reports provide varying estimates. Central Sulawesi lawmakers said in April that approximately 2,000 employees faced possible removal. A July industry report estimated that GNI had cut about 1,800 jobs over the previous year.

GNI previously described the workforce adjustment as temporary and linked it to a major repair of its smelting furnaces.

“Until now, the company’s operations continue according to the established strategic plan, with various adjustments made to maintain business continuity,” GNI representative Li Kaiguo said in an April statement reported by Antara News.

The company said affected workers could access Indonesia’s Job Loss Security program through BPJS Ketenagakerjaan. It also pledged to prioritize high-performing former employees when operations returned to normal.





The Central Jakarta Commercial Court placed GNI under temporary suspension of debt payment obligations (PKPU) in June. This was under case No. 140/Pdt.Sus-PKPU/2026/PN.Niaga.Jkt.Pst.

GNI confirmed the proceeding in a June 25 corporate statement. PKPU does not automatically mean bankruptcy or liquidation.

Instead, it gives a debtor and its creditors an opportunity to negotiate repayment and restructuring under court supervision.

The restructuring of GNI’s former controlling shareholder, China-based Jiangsu Delong Nickel Industry, has also intensified the company’s financial difficulties.

In March, a Chinese court approved Jiangsu Delong’s restructuring plan after proceedings that began in 2024.

Under the plan, state-controlled Zheshang Development or its designated entity will acquire 75 percent of Jiangsu Delong’s 99.84-percent indirect stake in GNI.

The transaction represents a planned transfer within the restructuring process. This evidence does not independently verify that Zheshang directly owns 75 percent of GNI.

The case matters because Indonesia dominates global nickel supply. The U.S. Geological Survey estimated that the country produced 62 percent of the world’s mined nickel in 2024.

That dominant position has attracted large foreign-funded smelters and created industrial jobs. GNI’s difficulties show that mineral reserves alone cannot guarantee the stability of downstream projects.





Smelters also need sustainable funding, a steady stream of ore and energy, an efficient facility and a responsible labor policy.

For policymakers, the immediate priorities are ensuring that GNI honors workers’ rights and monitoring its restructuring. Additionally, they are improving transparency around foreign-backed strategic projects.

The outcome will help determine whether Indonesia’s nickel expansion can deliver durable employment alongside higher domestic value.

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