The issue of nickel mining operations in Raja Ampat, Southwest Papua, has sparked controversy due to potential environmental damage. The government has specific reasons for allowing mining activities in the region. Currently, five companies are involved in mining operations there: PT Gag Nikel (PT GN), PT Anugerah Surya Pratama (ASP), PT Kawei Sejahtera Mining (KSM), PT Mulia Raymond Perkasa (MRP), and PT Nurham. Of these, only PT Gag Nikel is actively producing nickel, specifically on Gag Island, a small island covering 6,030 hectares.

PT GN holds a Contract of Work (CoW) covering 13,136 hectares on Gag Island and surrounding waters, all of which lie within protected forest areas. Environment Minister Hanif Faisol Nurofiq stated that open-pit mining is generally prohibited in protected forests, as stipulated in Forestry Law No. 41/1999. However, Law No. 19/2004, which ratifies a prior government regulation, allows 13 CoWs, including PT GN, to legally conduct open-pit mining in such areas. Thus, PT GN’s activities on Gag Island are considered legal.

"These 13 companies, including PT GN, are permitted under Law No. 19/2004. Therefore, their operations are legal," Hanif said during a virtual press conference on Sunday, June 8, 2025.

Nevertheless, Gag Island is classified as a small island, where mining is prohibited under Law No. 1/2014, which amended Law No. 27/2007. Article 23(1) of the law states that the use of small islands must follow a unified ecological and economic approach with nearby larger islands. Hanif emphasized that such areas should be prioritized for conservation, education, research, aquaculture, tourism, and other sustainable activities.

Article 35(k) of the same law prohibits mineral mining if it causes environmental harm or social disruption. Pre-existing permits must be aligned with the new law within three years.

"We will re-evaluate PT GN’s environmental approval, considering Gag Island is classified as a small island and Raja Ampat’s ecosystem is fragile. Restoration will be mandated for any resulting damage," Hanif asserted.

He noted that PT GN, a subsidiary of PT Antam Tbk, was the company with the least environmental damage, based on field inspections. PT GN holds all necessary permits, including the Mining Business License (IUP) and forest land use approval.

"Visually, the environmental impact of PT GN's operations appears minimal. However, further studies are needed for a complete assessment," he added.

Currently, mining operations for all five companies, including PT GN, have been temporarily suspended by the Ministry of Energy and Mineral Resources (ESDM). Minister Bahlil Lahadalia stated that technical evaluations are underway for all mining permit areas (WIUP) in the region.

"I came here to observe the situation and listen to the locals. The findings will be verified and analyzed by our inspectorate team," said Bahlil.

Although these companies hold valid permits, the ministry will continue conducting comprehensive evaluations to maintain balance between environmental sustainability and economic activity.

Profiles of the Five Nickel Mining Companies in Raja Ampat:

1. PT Gag Nikel The only company currently in production. Registered in MODI, with permits valid from 2017 to 2047, covering 13,136 ha. Originally owned 75% by Australia’s Asia Pacific Nickel and 25% by Antam. Since 2008, fully owned by Antam.

2. PT Anugerah Surya Pratama (ASP) A subsidiary of PT Wanxiang Nickel Indonesia (affiliated with China’s Vansun Group), operates on Manuran Island (746 ha). Found lacking proper environmental management, causing marine sedimentation. Violates Law No. 1/2014.

3. PT Kawei Sejahtera Mining (KSM) Established in 2023, holds a 2013 IUP covering 5,922 ha. Began mining in Block C in 2024. Illegally mined 5 ha beyond its permitted area, causing sedimentation on beaches and mangroves.

4. PT Mulia Raymond Perkasa (MRP) Holds IUP for 2,194 ha on Manyaifun and Batang Pele islands. Lacks forest land use approval. Started exploration on May 9, 2025, and was sanctioned for operating without environmental approval.

5. PT Nurham Listed as a mining company in Raja Ampat but not yet producing. Registered in Papua Provincial Government’s procurement system. No detailed public information available.