Mining permits halted at top tourist snorkelling spot

Raja Ampat, located in Southwest Papua province, spans nearly 20,000 square kilometres and boasts 75 per cent of the world's coral species and over 1,600 fish species.

The area is a designated Unesco Global Geopark with marine conservation zones managed by the Ministry of Marine Affairs and Fisheries.

Mr Lahadalia said the decision was prompted by an investigation by the Ministry of Environment, which revealed "several violations in the environmental context" by the four companies holding mining permits in Raja Ampat.

None of the four companies had started nickel operations as they failed to gain government approval for their Work Plan and Expenditure Budget, he said.

Last week, Greenpeace Indonesia and Papuan Youth staged a peaceful protest during the Indonesia Critical Minerals Conference & Expo. They demanded the closure of five nickel mining companies operating in Raja Ampat, including PT Gag Nikel, a subsidiary of state-owned mining company PT Aneka Tambang.

The government suspended nickel mining operations at four of the five companies.

The fifth, Gag Nikel, has been allowed to continue its operations on Gag Island as it lies outside the geopark area, Mr Lahadalia said. Gag Island is about 42 kilometres (26 miles) west of Piyanemo, a popular diving spot in Raja Ampat.

Gag Nikel has a concession area of ​​130 square kilometres (50 square miles). It produced around three million wet metric tons of nickel in 2024, and is expected to produce the same amount in 2025 and 2026.

Mr Lahadalia said Indonesian President Prabowo Subianto has instructed him, along with ministers for the environment and forestry, to closely monitor Gag Nikel's mining operation.

“We are really serious in our intent to protect the environment in Raja Ampat," Mr Lahadalia said.

“We want to produce nickel that is environmentally friendly and acceptable (to the world’s standard).”

Indonesia has the largest nickel reserves in the world and aims to dominate global nickel supply. Its nickel ore lies in shallow deposits, easily accessible when the rainforest is cut down.

In 2023, the country was responsible for more than half the supply of nickel globally. The country has gone from having two nickel smelters to 27 over the last decade and plans to open 22 more, according to S&P Global Commodity Insights.

Nickel was once known mainly for making stainless steel, but demand has skyrocketed as automakers like Tesla use it to make electric vehicle batteries and larger battery makers use it in clean electricity projects.

Rapid growth of Indonesia's nickel industry has already led to environmental degradation across several regions on Sulawesi Island, said Greenpeace forest campaigner Iqbal Damanik.

“Now nickel mining is also threatening Raja Ampat, a place that is often called the last paradise on Earth,” the campaigner said.

Over 500 hectares of forest and vegetation have been cleared for nickel mines on the West Papua islands of Gag, Kawe and Manuran, according to Greenpeace Indonesia.

The three islands are classified as small islands. Indonesia’s law on the management of coastal areas and small islands prohibits mining as it could lead to soil runoff and sedimentation that endangers coral reefs and marine ecosystems.