TEMPO.CO, Jakarta - Energy and Mineral Resources Minister Bahlil Lahadalia clarified that the nickel mining permit for operations in Raja Ampat, Southwest Papua, was granted before he took office. The statement followed the government’s recent decision to temporarily suspend production activities by PT Gag Nikel amid public scrutiny and environmental concerns.
"I need to emphasize, when the mining business permit was issued, I was still the Chairman of HIPMI and had not entered the cabinet," Bahlil said in an official statement on Friday, June 6, 2025.
PT Gag Nikel, according to Bahlil, holds a Generation VII Contract of Work, identified as Number B53/Pres/I/1998. The contract was signed on January 19, 1998, under the administration of the then-president.
In response to growing criticism that mining activity was threatening Raja Ampat’s iconic tourism sites, Bahlil denied reports that operations were taking place on Piaynemo Island, a popular destination known for its karst formations and coral reefs.
"Many media reports state that mining is carried out on Piaynemo Island. That is not true. The location is on Gag Island, which is quite far from Piaynemo. I know this because I have visited Raja Ampat quite often," he said.
Bahlil stressed that the Ministry of Energy and Mineral Resources is responsible for ensuring mining practices adhere to proper standards. He emphasized the need for on-the-ground inspections to assess actual conditions rather than relying solely on documentation.
"We need to check directly in the field to know the actual conditions, not just based on reports," he said.
He added that the government remains committed to balancing natural resource management with the protection of conservation areas and vital tourism zones, including those in Raja Ampat.
The suspension of PT Gag Nikel’s Mining Business Permit (IUP) took effect on Thursday, June 5, 2025. The move came in response to protests from environmental activists and civil society organizations, who warned of ecosystem risks tied to the mining operation.
"For the time being, we will halt its operations until field verification. We will check," Bahlil stated.
PT Gag Nikel is a subsidiary of the state-owned enterprise PT Antam Tbk. Bahlil explained that the company's production permit was issued in 2017, with operations beginning a year later. "Before operating, there was an EIA (environmental impact analysis). The EIA already existed," said Bahlil, who also serves as the General Chairman of the Golkar Party.
Initially, the company was owned by Asia Pacific Nickel Pty. Ltd. (75%) and PT Aneka Tambang (25%). Since 2008, however, PT Antam has acquired all shares of its partner and now fully owns PT Gag Nikel.
Opposition to mining in Raja Ampat has intensified, with Greenpeace Indonesia voicing strong criticism during the Indonesia Critical Minerals Conference & Expo held in Jakarta on June 3. Kiki Taufik, Head of Greenpeace's Global Forest Campaign in Indonesia, warned that allowing mining in the region would cause irreversible environmental damage.
"Currently, there are already five islands that are starting to be exploited. Yet, this area is a global geopark and the most popular underwater tourist destination. Around 75% of the world's best coral reefs are in Raja Ampat, and now they are beginning to be damaged," said Kiki.
Greenpeace’s investigation last year found active mining on Gag Island, Kawe Island, and Manuran Island—areas classified as small islands under Law No. 1 of 2014 on the Management of Coastal Areas and Small Islands, which prohibits mining on such islands.
According to the organization’s analysis, mining has led to the destruction of over 500 hectares of forest and vegetation, while field documentation revealed runoff and sedimentation affecting marine ecosystems and coral reefs.
Riri Rahayu contributed to the writing of this article.
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