Indonesia’s Ministry of Energy
and Mineral Resources (ESDM) has ordered a temporary suspension of
nickel mining operations on Gag Island, part of the ecologically
sensitive Raja Ampat archipelago, amid growing concerns over
environmental degradation and regulatory scrutiny, Indonesia
Business Post reports. The mining concession is managed by PT
Gag Nikel, a subsidiary of state-owned miner PT Aneka Tambang
(Antam).
Speaking at a press conference on
June 5, ESDM Minister Bahlil Lahadalia confirmed the company’s
production license was issued in 2017 and operations began in 2018.
He stressed that PT Gag Nikel had secured the necessary
Environmental Impact Assessment (AMDAL) prior to commencing
activities. The site, once operated under a Contract of Work (CoW)
by a foreign company in the late 1990s, was later transferred to
Antam following the foreign partner’s withdrawal.
Despite defending the legality of
the mining operation, Bahlil announced that activities on Gag
Island would be suspended pending a field verification review. “We
have instructed the Director General of Mineral and Coal to
temporarily halt PT Gag Nikel’s operations. This decision will
remain in place until my team completes an on-site evaluation,” he
stated, affirming the ministry’s commitment to direct field
inspections rather than relying solely on desk
assessments.
The announcement comes on the
heels of a report by Greenpeace, which highlighted mining activity
on several islands in Raja Ampat, including Gag, Kawe, and Manuran.
These islands fall under Indonesia’s 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
environmental vulnerability. Gag Island is located within the Coral
Triangle, one of the world’s richest marine biodiversity
zones.
Bahlil noted that while four
other mining permits (IUPs) exist in the region, only PT Gag Nikel
is currently operational. One other company had previously operated
but ceased production in early 2024.
In response to the growing
scrutiny, the House of Representatives has echoed calls for a
thorough reassessment of mining permits in the area. Deputy
Chair of Commission VII for Tourism and Industry, Evita Nursanty,
stressed the importance of prioritising environmental conservation
and tourism development over extractive industries in Raja Ampat.
“We need to question whether continued mining in Raja Ampat is
worth the risk to its fragile ecosystem,” she said during a visit
to Sorong, Southwest Papua.
Evita also highlighted the
region’s financial constraints, with a provincial budget of just
Rp1.4 trillion, which she said limits its capacity to capitalise on
tourism. She urged local authorities to pursue partnerships with
private investors, including proposals to develop helicopter
transport services to connect remote tourist destinations across
the archipelago.
As the Indonesian government
grapples with balancing economic development and environmental
preservation, the halt on Gag Island is likely to set a precedent
for future resource governance in one of the country’s most prized
ecological and tourism frontiers.
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