Government cites a “green” rating for state-owned PT Gag Nikel, while NGOs warn of coral destruction and livelihoods at risk in one of the world’s richest marine ecosystems.
JAKARTA — The Indonesian government has allowed PT Gag Nikel, a state-owned miner, to resume operations on Gag Island in Raja Ampat, reopening a controversy that cuts to the heart of how the country balances economic ambition with environmental stewardship.
Mining resumed on Sept. 3 after a moratorium imposed in June was lifted, even though Indonesian law prohibits mining on small islands and despite mounting evidence of reef and community impacts. Raja Ampat, often called the “Amazon of the seas,” is home to 75% of the world’s coral species and more than 1,700 reef fish species, making it one of Earth’s most biodiverse marine ecosystems.
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Officials defended the move by pointing to PT Gag Nikel’s “green” rating in the environment ministry’s annual assessment of companies’ environmental and social performance.
“A green rating means a company is complying with all environmental governance plus community empowerment,” said Tri Winarno, head of mining and coal at the Ministry of Energy and Mineral Resources. Environment Minister Hanif Faisol Nurofiq added that Gag Nikel would face “layered supervision” and stricter oversight.
Company’s Own Report Found Coral and Health Impacts
But the official assurances stand in sharp contrast to the company’s own 2024 study, which documented widespread community complaints.
The survey, carried out by Sorong Polytechnic Institute and funded by Gag Nikel, interviewed 50 island residents and workers. It found:
- 66% of respondents said the mine had polluted the environment.
- 44% reported negative health impacts, including coughs and flu linked to dust.
- Fishermen reported traveling two hours farther out to sea to find fish due to sedimentation.
- Barges hauling nickel ore were found to damage coral reefs by dragging anchors, destroying corals over areas larger than 20 meters.
“The reefs are being smothered, the fish are gone, and people’s health is suffering,” the authors noted.
Activists Reject “Green” Label, Double Standards and Economic Stakes
Environmental groups say the “green” classification is masking destruction.
“The ‘compliance’ label is nothing more than formal legitimacy that hides real destruction,” said Hilman Afif, campaigner at NGO Auriga Nusantara. “There has been no transparency or independent scientific data on coral reefs, plankton, or long-term impacts.”
Auriga’s director Timer Manurung questioned how a mine on a small island could be branded “green” at all, given legal restrictions.
Greenpeace Indonesia echoed the alarm. More than 60,000 people have signed a petition calling for an end to all mining in Raja Ampat. “No nickel is worth the destruction of the Raja Ampat ecosystem, which is often referred to as the last paradise on Earth,” said Arie Rompas, head of Greenpeace’s forest campaign team.
Critics note the government recently revoked four other nickel concessions in Raja Ampat for sedimentation and deforestation, yet only temporarily suspended Gag Nikel’s license before reopening it.
Officials insist Gag Nikel’s footprint is “minimal.” During a site visit in June, mining minister Bahlil Lahadaliadismissed viral posts of reef damage as “false” and said he saw no signs of pollution. The marine affairs ministry reported little sedimentation in its inspections.
Yet Antam, PT Gag Nikel’s parent company, admitted in June that the operation is “not fully compliant,” though it downplayed issues as “minor.”
The stakes are high. Gag Island yields 3 million metric tons of nickel ore annually, feeding Indonesia’s growing electric vehicle battery industry via the Weda Bay industrial park in Halmahera, 250 kilometers away. Nickel is critical for stainless steel, lithium-ion batteries, and clean energy technologies.
Local leaders also back the mine as a path to development.
The Outcry Grows Louder
For conservationists, the government’s decision underlines a troubling contradiction: the world’s demand for green energy is coming at the expense of one of its most irreplaceable ecosystems.
“Mining activities carry a huge risk of causing sedimentation that damages coral reefs in Raja Ampat — the global center of marine biodiversity,” Afif said. “Once the reefs are smothered, the habitat of thousands of species will disappear, and the livelihoods of local communities will be threatened.”
Rompas put it more bluntly: “The government and corporations are placing environmental protection and human rights beneath short-term extractive profits.”
As the fight over Gag Island intensifies, the question remains whether Indonesia can truly lead the green energy transition while safeguarding the reefs and communities of Raja Ampat — or whether one paradise will be sacrificed for another.
Lead image courtesy of Auriga Nusantara (Deforestation for nickel mining in Gag Island, Raja Ampat, Indonesia)
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