Indonesia’s controversial decision to resume nickel mining in Raja Ampat, a region celebrated for its unparalleled marine biodiversity, has sparked widespread concern over potential environmental damage. The “Mining vs. Reefs” dilemma intensifies as state-owned PT Gag Nikel prepares to resume operations on Gag Island, effective September 3, 2025. This move directly contradicts the region’s status as a UNESCO Global Geopark and a global biodiversity hotspot, igniting fierce opposition from environmental groups, local communities, and tourism stakeholders who fear irreversible harm to the area’s pristine coral reefs and delicate ecosystems.
Raja Ampat Mining Resumption: Key Players
The Indonesian government, particularly the Ministry of Energy and Mineral Resources (ESDM), the Ministry of Environment, and the Ministry of Maritime Affairs and Fisheries, authorized PT Gag Nikel’s return to Gag Island. PT Gag Nikel, a subsidiary of PT Aneka Tambang Tbk (Antam), now faces strong opposition from environmental organizations, most notably Greenpeace Indonesia, along with local Indigenous West Papuan communities and tourism industry representatives like the Indonesian Travel Agents Association (Astindo). This decision follows the revocation of permits for four other mining companies – PT Anugerah Surya Pratama, PT Kawei Sejahtera Mining, PT Mulia Raymond Perkasa, and PT Nurham – in June 2025 for environmental violations, some of which are now being challenged in court.
The Timeline: When and Where
Mining activities officially restarted on September 3, 2025, after a temporary suspension in June 2025, prompted by public outcry and protests led by Greenpeace. The Ministry of Energy and Mineral Resources had initially halted operations for field verification. Gag Island, the site of the mining, is part of the Raja Ampat archipelago in Southwest Papua, Indonesia. This region is globally recognized for its extraordinary marine life, boasting approximately 75% of the world’s known coral species and over 2,500 fish species. PT Gag Nikel’s original 50-year special mining license (Contract of Work) was granted in 1998, with operations commencing in 2018.
Justification and Allegations
The Indonesian government defends its decision by highlighting PT Gag Nikel’s “green” rating in the Ministry of Environment’s annual assessment, indicating adherence to environmental management standards. This assessment, however, sharply contrasts with a 2024 study commissioned by PT Gag Nikel itself, which revealed widespread community complaints regarding dust, health problems, sedimentation, and coral damage resulting from its operations. Despite these concerns, the government prioritizes Indonesia’s ambition to become a global leader in the electric vehicle (EV) supply chain, leveraging its vast nickel reserves, a critical component for EV batteries. Environmental groups, however, allege potential collusion between authorities and mining companies in the issuance of mining permits within such a sensitive ecological zone, as reported by Mongabay in June 2025.
Environmental and Socioeconomic Impact: “Mining vs. Reefs”
Ecological Consequences
The resumption of nickel mining poses significant environmental threats to Raja Ampat’s fragile ecosystems. Deforestation, documented at 262 to 309 hectares on Gag Island between 2017 and 2024, leads to soil erosion and sediment runoff. This increased sedimentation elevates turbidity in the surrounding waters, smothering and damaging coral reefs, which serve as essential habitats for countless marine species. As reported by Mysteel in July 2025, the long-term effects of this sedimentation could devastate the region’s biodiversity.
Community Health and Livelihoods
Local communities report a decline in their health, experiencing issues such as coughs and flu, which they attribute to dust from the mining operations. Fishermen have also observed reduced fish catches, as marine life is driven further out to sea. The Business & Human Rights Resource Centre highlighted these community concerns in their August 2025 report, emphasizing the direct impact on livelihoods.
Tourism Sector at Risk
The tourism sector, a cornerstone of the local economy, faces a severe threat. Industry representatives, including those from the Indonesian Travel Agents Association (Astindo), warn that mining and tourism cannot coexist sustainably in Raja Ampat. The potential loss of tourism revenue could have devastating consequences for local communities that rely on the industry for their livelihoods.
Public Response and Legal Challenges
The government’s decision has triggered widespread public outcry and protests, fueling campaigns such as #SaveRajaAmpat. Some companies whose permits were revoked are pursuing legal action to reactivate their concessions, as reported by The Jakarta Post in July 2025. This situation underscores the fundamental conflict between Indonesia’s economic development goals and its commitment to environmental protection and sustainable tourism.
Conclusion
The Indonesian government’s decision to allow nickel mining to resume in Raja Ampat presents a complex challenge, balancing economic ambitions with the imperative to protect a globally significant biodiversity hotspot. The potential for irreversible environmental damage, coupled with concerns over community health and the tourism sector, necessitates a thorough reevaluation of the long-term consequences. Ultimately, a sustainable path forward requires prioritizing environmental protection and ensuring the well-being of local communities alongside economic development.
