Indonesia revokes nickel mining permits at top diving spot

[Ben Graham]

Indonesia has revoked four out of five nickel mining permits in Raja Ampat, one of the country’s most prized diving and snorkelling destinations, following mounting environmental concerns and pressure from local communities.

The decision, announced Tuesday by Energy and Mineral Resources Minister Bahlil Lahadalia after a Cabinet meeting, immediately halts operations by PT Anugerah Surya Pratama, PT Nurham, PT Kawei Sejahtera Mining, and PT Mulia Raymond Perkasa.

According to Lahadalia, three of the companies had held permits since 2013, while PT Nurham had received approval this year but had not yet begun production.

Only PT Gag Nikel will continue operating in the region. Its mine on Gag Island lies about 42 km west of Piyanemo, one of Raja Ampat’s most popular marine tourism spots. Gag Nikel, which holds a 130-square-km concession, produced around 3 million tonnes of nickel in 2024 and is expected to maintain that output through 2026.

Despite being spared from the sweeping revocations, Gag Nikel was temporarily ordered to pause activities last week amid protests over mining in the ecologically sensitive region. It remains unclear whether that suspension has been lifted.

Indonesia halts mine near dive hotspot on tourism concern

The clampdown follows a January report by Climate Rights International, which alleged the Indonesian government was allowing environmental degradation and human rights violations by nickel miners, particularly in the eastern Maluku Islands.

Raja Ampat, an archipelagic regency in Southwest Papua province, spans nearly 20,000 square km and is home some of the planet’s richest marine biodiversity, including 75% of the world’s coral species and more than 1,600 species of fish. It is a designated UNESCO Global Geopark and includes marine protected zones overseen by the Ministry of Marine Affairs and Fisheries.

Indonesia has rapidly expanded its nickel sector to support the global electric vehicle boom, growing from just two smelters a decade ago to 27 today, according to S&P Global Commodity Insights. The country has another 22 smelters in the pipeline. 

Indonesia now supplies well over half of the world’s nickel output, making it a key player in the battery supply chain.