Indonesia revokes licences of four nickel miners in tourism hot spot Raja Ampat amid environmental backlash

Business Times

a day ago

[JAKARTA] The Indonesian government has revoked the mining licences of four nickel producers operating in the ecotourism hot spot of Raja Ampat, Papua, in response to public protests over environmental concerns.
The nickel companies – Nurham, Kawei Sejahtera Mining, Anugerah Surya Pratama and Mulia Raymond Perkasa – have been operating on multiple islands within and around the ecologically sensitive Raja Ampat region in Indonesia's eastern archipelago.
Public pressure
Their activities have sparked significant concern among local communities and environmental groups, due to the area's rich biodiversity and status as a renowned ecotourism destination.
Mining activities have sparked significant concern among local communities and environmental groups, due to the Raja Ampat's rich biodiversity and status as a renowned ecotourism destination. PHOTO: AFP
On Tuesday (Jun 10), Energy and Mineral Resources Minister Bahlil Lahadalia stated that the revocation was due to the four companies' failure to comply with administrative regulations and submit their work plan proposals, particularly for operations within the geopark conservation area.
'We have to protect our marine life and conservation areas,' he said, adding that the government withheld production quotas from these companies due to their non-compliance, effectively halting their operations.
However, the permit of Gag Nikel – a nickel miner and subsidiary of state-owned Aneka Tambang (Antam) – will be temporarily suspended but not revoked, as the company operates outside the designated geopark, Bahlil explained. He added that the government will maintain close and thorough oversight of Gag Nikel's activities, ensuring strict compliance with regulatory standards.
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Gag Nikel holds a quota to mine up to 3 million tonnes of nickel ore annually.
The government's statement comes amid growing public scrutiny and pressure from environmental organisations such as Greenpeace, which recently released an analysis revealing that mining activities on Gag island, Kawe, and Manuran have led to the clearing of over 500 hectares (ha) of forest.
Raja Ampat is renowned for its coral reefs, which play a crucial role in sustaining its global reputation as a premier destination for divers. PHOTO: AFP
Greenpeace further pointed out that soil run-off from these mining activities resulted in sedimentation, posing a serious risk to the fragile coastal ecosystems. This includes the region's renowned coral reefs, which play a crucial role in sustaining Raja Ampat's global reputation as a premier destination for divers.
The hashtag #SaveRajaAmpat has been trending on social media, with the Indonesian public calling on the government to re-evaluate mining activities in the region.
Government documents reveal that the four companies obtained mining permits for areas ranging between roughly 1,000 and 3,000 ha in Raja Ampat, with their licences issued before 2017 – prior to the official designation of the region as a geopark.
Maintaining a balance
This timing raises complex questions about the balance between existing mining rights and evolving environmental protections.
A view of Gag Nikel's mining operations in Gag island. Indonesia, which produces 1.8 million tonnes of nickel annually – nearly half of the world's supply – has made bold investment moves since implementing a 2019 ban on raw nickel exports. PHOTO: REUTERS
Meidy Katrin Lengkey, secretary-general of the Indonesian Nickel Miners Association, said the revocation should serve as an opportunity to improve coordination among government agencies.
'We hope the government can create a regulatory ecosystem that is well-coordinated across institutions and ensures business certainty, while still prioritising environmental, social and governance considerations,' she said.
Indonesia, which produces 1.8 million tonnes of nickel annually – nearly half of the world's supply – has made bold investment moves since implementing a 2019 ban on raw nickel exports.
The policy, introduced under then president Joko Widodo's administration, is designed to boost domestic processing and ensure more value is retained from the country's vast mineral wealth. The strategy has drawn billions of dollars in foreign investment, particularly from China, positioning Indonesia as a critical player in the global electric vehicle (EV) supply chain.
However, Indonesia's rapidly expanding nickel mining industry – driven by surging global demand for EV batteries and green technologies – has also sparked serious environmental and labour concerns, particularly in resource-rich yet ecologically sensitive regions such as Sulawesi, Maluku and Halmahera.