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Indonesia launches rare crackdown on nickel mines in ‘last paradise’

by Investor News Today
June 14, 2025
in Market Updates
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Indonesia launches rare crackdown on nickel mines in ‘last paradise’
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By cancelling the permits of 4 out of 5 nickel mining corporations working in Indonesia’s Raja Ampat archipelago, President Prabowo Subianto this month handed a uncommon win to environmental teams which have lengthy criticised the quickly rising trade.

Prabowo’s intervention adopted a report by Greenpeace that stated nickel exploitation on three Raja Ampat islands had destroyed greater than 500 hectares of forest and precipitated soil run-off threatening the coral reefs and marine ecosystems which have made the islands a treasured diving vacation spot.

However the motion to guard an space touted as “the final paradise on earth” is not going to quiet rising controversy over the affect of the increasing nickel sector in Indonesia, the world’s largest producer of a steel crucial for stainless-steel and electrical automobile batteries.

“The information this week that the federal government will cancel 4 mining licences is a step ahead, nevertheless it’s not sufficient,” stated Kiki Taufik, head of Greenpeace’s Indonesia forest marketing campaign. “The federal government has left the door open to polluting nickel mining.”

Raja Ampat contains greater than 1,500 islands and islets on the coronary heart of coral-rich waters in Indonesia’s easternmost province of Papua. House to three-quarters of the world’s coral species and round 2,500 species of fish, it’s a standard diving location, and one of many vacationer websites that Indonesia is growing as an alternative choice to Bali, which is grappling with overtourism.  

The realm, which can also be designated by Unesco as a geopark for its geological significance, drew public consideration when Greenpeace activists interrupted a speech by deputy overseas minister Arif Havas Oegroseno at a serious minerals convention in Jakarta final week. The activists held up indicators saying “nickel mines destroy lives” and “what’s the true price of your nickel?”

Prabowo subsequently ordered an investigation after which the cancellation of the mining licences of 4 corporations working in Raja Ampat, together with no less than one that’s managed by a Chinese language group. 

People holding up protest banners and placards
A protest march towards nickel mining in Raja Ampat in Papua this week © Awakiraya/AFP/Getty Pictures

The surroundings ministry stated its investigation discovered situations of air pollution and mining in protected forest areas. It additionally stated it could take authorized motion towards a few of the corporations.

“We is not going to permit an inch of injury to the realm that’s residence to 75 per cent of the world’s coral species and hundreds of endemic species,” surroundings minister Hanif Faisol Nurofiq stated in a press release. “Regulation enforcement and environmental restoration are our important commitments.”

However power and mineral assets minister Bahlil Lahadalia disputed Greenpeace’s claims that coral reefs had been broken by nickel mining actions.

He stated the 4 corporations that had their licences cancelled — Anugerah Surya Pratama, Kawei Sejahtera Mining, Mulia Raymond Perkasa and Nurham — had not been conducting any mining operations this yr. A fifth firm, Gag Nikel, is mining and has been allowed to proceed manufacturing, with the federal government saying it’s situated outdoors the Unesco-designated space. 

Anugerah Surya Pratama is 60-per cent owned by Wanxiang Nickel Indonesia, which in flip is owned by China’s Vansun Group, in keeping with Indonesian firm data.   

Heavy machinery operates at the nickel mining site of PT Kawei Sejahtera Mining on Kawe Island
A picture provided by Greenpeace of a mining web site on the island of Kawe in Raja Ampat © ©Nita/Greenpeace

The 5 corporations didn’t reply to requests for remark. In feedback reported by native media, Gag Nikel stated it was able to adjust to authorities necessities and to tighten environmental requirements.

Criticism has dogged the speedy development of Indonesia’s nickel trade, which at the moment controls practically two-thirds of worldwide provide of the refined steel, up from simply 6 per cent a decade in the past. 

A ban on exports of uncooked nickel ore in 2020 triggered a wave of funding in nickel processing, primarily from China, as metal and battery producers sought to safe provide. 

However that swift enlargement has come at a price.

Rivals and campaigners have accused Indonesia of manufacturing “‘soiled nickel” due to deforestation and different environmental degradation attributable to mining and waste disposal from processing, in addition to the heavy use of coal to energy smelters. Officers have beforehand denied these claims, but in addition vowed to enhance enforcement of environmental legal guidelines.

Employee security has additionally been a problem, with nickel facilities suffering frequent accidents.

Greenpeace has referred to as for a ban on all mining and processing actions in Raja Ampat. Taufik stated the licences might doubtlessly be restored if the cancellations have been challenged in courtroom, as had occurred previously. 



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