PT Gag Nikel, a mining concession holder in Raja Ampat Regency, Southwest Papua Province, has defended its mining activities in the biodiversity-rich region saying that it has fulfilled the legal requirements to conduct mining operations there.

Acting president director of PT Gag Nikel, Arya Arditya, said that the company had secured all required operational permits and adheres to Good Mining Practices.

He also noted that the company operates outside UNESCO Geopark and conservation zones, and that their mining area falls within the designated Raja Ampat Mining Zone in local spatial plans.

“We have maintained continuous coordination with the Environment and Forestry Ministries for ongoing monitoring of our activities,” Arya said as quoted in a statement on Saturday, June 7, 2025.

The Ministry of Energy and Mineral Resources (ESDM) has ordered the suspension of nickel mining operations by PT Gag Nikel in Raja Ampat, Papua, following mounting public pressure and environmental concerns. The halt, effective since June 5, 2025 was announced by Minister Bahlil Lahadalia.

“For now, we have suspended operations pending a field verification. We will conduct checks on-site,” Bahlil saidon Thursday, citing strong opposition from civil society groups and environmental activists over threats to Raja Ampat’s unique marine and terrestrial ecosystems.

Arya expressed the company’s full compliance with the government’s decision.

“We respect and fully accept the Minister’s directive until the verification process is complete,” Arya said.

Since being granted its production operation permit in 2017 and beginning activities in 2018, Gag Nikel claims to have implemented a series of sustainability programs, including watershed rehabilitation of 666.6 hectares, with 231.1 hectares fully restored and handed over, and another 435 hectares in various stages of assessment and maintenance.

Then, mining site reclamation covering 136.72 hectares, with over 350,000 trees planted, including 70,000 local and endemic species; coral reef conservation through a 1,000-square-meter transplant program, jointly monitored with Sorong’s Marine and Fisheries Polytechnic; and environmental quality monitoring in 2024 which showed air pollutant levels well below regulatory thresholds, while wastewater and noise levels also remained within permissible limits.

“Our operations in Raja Ampat demonstrate that mining and conservation can coexist responsibly,” Arya asserted.

Skepticism

However, environmental advocates remain skeptical. Arko Tarigan, a Trend Asia campaigner, raised concerns over regulatory loopholes that continue to permit extractive industries on small islands, in apparent contradiction of national law.

Referring to Law No. 27/2007 on the Management of Coastal Areas and Small Islands, Arko emphasized that mining and other “abnormally dangerous activities” are explicitly banned on islands smaller than 2,000 km². He also cited Article 35(k) of the law, which prescribes criminal penalties, including up to 10 years in prison. for unauthorized mining activities in these areas.

Despite these provisions, Arko noted that outdated permits, administrative inconsistencies between central and local governments, and interpretive flexibility in spatial planning continue to be exploited by mining interests.

“Even though the law is clear, the enforcement is not. The government hasn’t shown seriousness in protecting ecosystems,” Arko said during a public forum hosted by watchdog group Koreksi.org on Sunday, June 8, 2025.

With the suspension now in place, environmental groups are calling on the ministry to follow through with a transparent and science-based review. The case of PT Gag Nikel could become a litmus test for Indonesia’s commitment to protecting its coastal and island ecosystems in the face of economic pressures from the mining sector.