Minister of Energy and Mineral Resources (ESDM),Bahlil Lahadalia, has confirmed that nickel mining concession on Gag Island, part of the ecologically sensitive Raja Ampat archipelago, is controlled by PT Gag Nikel, a subsidiary of State miner PT Aneka Tambang (Antam).

“PT Gag Nikel is owned by Antam, a state-owned enterprise. Its production license was issued in 2017, and operations began in 2018,” Bahlil told a press conference at the ESDM ministry on Thursday, June 5, 2025.

He emphasized that the company had already obtained an Environmental Impact Assessment (AMDAL) permit prior to beginning operations. Historically, the mining concession on Gag Island was governed under a Contract of Work (CoW) issued in 1997–1998 and initially controlled by a foreign entity.

“The foreign company later withdrew, and the site was taken over by the State and handed over to Antam,” Bahlil cited.

In addition to Gag Island, Bahlil noted that there are four other mining permits (IUPs) in the Raja Ampat area. However, only PT Gag Nikel is currently active. “The others have not commenced operations. One IUP was operational, but ceased production in early 2024,” he added.

The minister’s clarification follows reports by global environmental group Greenpeace, which flagged mining activity on several Raja Ampat islands, including Gag, Kawe, and Manuran.

These islands are classified as small islands under Law No. 1/2014 on Coastal Areas and Small Islands Management, which generally prohibits mining on islands smaller than 2,000 hectares due to their ecological vulnerability.

Environmental activists and local communities have long raised concerns over the potential environmental degradation caused by mining in one of the world’s most biodiverse marine ecosystems. Gag Island and its surroundings are part of the Coral Triangle, a global marine conservation priority.

Bahlil did not directly address the Greenpeace allegations during the press conference, but emphasized that PT Gag Nikel’s operations are “legal and regulated,” citing existing permits and regulatory compliance.

Halt Operation

Bahlil has decided to temporarily halt nickel mining operations by PT Gag Nikel on Gag Island. "We have decided through the Director General of Mineral and Coal for the status of PT Gag's IUP to temporarily halt operations," Bahlil said.

Lately since the announcement was made. The company is not allowed to continue production activities until the verification process and review of field conditions by the ESDM Ministry team are complete.

"Starting from when I spoke, not forever. For the time being, production activities have been stopped until I await the results of the verification review from my team," said Bahlil.

"We will go to Gag Island. We are not just talking from behind a desk," he added.

The halt is part of a comprehensive evaluation of mining activities in the sensitive Raja Ampat ecosystem area, which is renowned for its rich marine biodiversity and its status as a world priority conservation area.

The government’s stance will likely continue to attract scrutiny as it attempts to balance natural resource development with environmental protection and indigenous rights in Indonesia’s remote eastern regions.

On the other hand, the House of Representatives (DPR) has emphasized the urgency of evaluating existing mining permits in Raja Ampat, Southwest Papua, an area globally recognized for its marine biodiversity and eco-tourism potential.

“We must ask whether these mining operations should continue if their presence only threatens Raja Ampat’s delicate ecosystem,” Deputy Chair of House Tourism and Industry Commission VII, Evita Nursanty, told reporters in Sorong on the sidelines of a working visit to Southwest Papua on June 1, 2025 as quoted by Antara.

She affirmed her commitment to bringing these regional concerns to a broader discussion with Energy and Investment Commission XII and the relevant ministries in Jakarta. The discussions are expected to address tourism strategy, environmental preservation, and equitable resource development in the nation’s youngest province.

Evita acknowledged financial limitations facing the province, which operates on a relatively modest regional budget of approximately Rp1.4 trillion. “This small budget poses significant challenges in developing tourism potential, particularly in Raja Ampat,” she said.

Evita asked local governments to seek innovative solutions, including partnerships with private investors. One suggestion is to establish helicopter transport services to connect visitors with remote tourist sites scattered across different islands.

“Collaboration with the private sector is key in overcoming geographical constraints,” she said.

The lawmaker also expressed concern over environmental degradation allegedly caused by nickel mining in Raja Ampat, an issue that has sparked protests in affected communities.