BUSINESS

China’s Industrial Drive Into Indonesia Runs Into a Personnel Shortage

Published: Jun. 4, 2025 7:00 p.m. GMT+8

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The joint research lab that GEM helped set up opens at the Bandung Institute of Technology on Aug. 28, 2024. Photo: Xinhua

(Jakarta and Bandung, Indonesia) — When Chinese nickel producer Zhejiang Huayou Cobalt Co. Ltd. (603799.SH) launched a new project in Indonesia, the shortage of truck drivers proved so acute it had to set up its own driving school.

“We were short on workers — from engineers to technicians and drivers,” said vice president Sun Lihui during a Belt and Road investment summit held in Jakarta from May 24-26. “We ended up establishing a school to train our own drivers. So far, we’ve trained more than 2,000,” he told Caixin.

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Chinese companies setting up in Indonesia face a significant shortage of skilled local workers, including engineers and technicians.
Companies like Huayou Cobalt and GEM are establishing training programs and joint research labs with Indonesian universities to cultivate local talent.
Despite efforts, challenges remain, including language barriers and the need for broader systemic changes in Indonesia's talent development.

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Who’s Who

Zhejiang Huayou Cobalt Co. Ltd.: Zhejiang Huayou Cobalt Co. Ltd. is a Chinese nickel producer. Facing a severe shortage of truck drivers for its new project in Indonesia, the company established its own driving school, training over 2,000 drivers. This initiative highlights the significant skills gap in Indonesia despite large Chinese investments, necessitating companies like Huayou to cultivate local talent to support their operations.

GEM Co. Ltd.: GEM Co. Ltd. is a major recycler of batteries and solid waste. The company partnered with Vale SA's Indonesian unit to build a nickel plant in Sulawesi. To address the local skills gap, GEM has collaborated with China's Central South University and invested in a joint research lab at Indonesia's Bandung Institute of Technology, training Indonesian students in metallurgy and battery technologies.

Vale SA: Vale SA, a Brazilian multinational corporation, has an Indonesian unit that signed a deal with GEM Co. Ltd. This agreement involves building a plant on Sulawesi island with an annual capacity of 66,000 metric tons of nickel.

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