Hans Nicholas Jong, Jakarta – A stormy saga over nickel mining in one of the most biodiverse marine regions in the world appears to be far from over, even after the Indonesian government revoked the permits of most of the companies involved.
In the latest development, Greenpeace has revealed that three companies hit by earlier permit infractions are currently challenging the government in court to allow them to mine on islands in the Raja Ampat archipelago. At the same time, the government itself is planning to build a nickel processing plant nearby, according to the Greenpeace report.
PT Anugerah Surya Pratama (ASP) is one of four mining companies whose permits were revoked on June 10 for alleged environmental and zoning violations, among other cited reasons. It had its permit to another concession in the archipelago, located on Waigeo Island, revoked in 2022, and earlier this year filed a lawsuit against the government over that revocation. Two other miners, PT Waegeo Mineral Mining (WMM) and PT Eka Kurnia Baru (EKB), also have lawsuits pending in court over the government's refusal to officially recognize their permits on Waigeo Island since 2023.
These concessions could be reactivated if they won in court, Greenpeace Indonesia forest campaign team leader Arie Rompas said in Jakarta on June 12 at the launch of the report.
He added that Greenpeace is therefore calling for a complete revocation of all nickel mining permits across Raja Ampat, and for the government to not issue further licenses.
That's why we need a legally binding framework [for a total mining ban in Raja Ampat], Arie said, so that the ongoing court processes don't result in these permits being reactivated through legal loopholes.
From mine to smelter
Located in the heart of the Pacific Coral Triangle, Raja Ampat is globally renowned for its marine biodiversity, home to about 75% of the world's known coral species earning it the nickname of the Amazon of the seas. But that hasn't spared it from the government's relentless drive to exploit Indonesia's world-leading reserves of nickel a key component in the batteries used in electric vehicles and energy storage applications.
A viral social media campaign, #SaveRajaAmpat, championed by Greenpeace, spurred a public outcry after highlighting the expansion of nickel mines and the attendant environmental degradation in the region famous for its picturesque islets and turquoise waters.
In response, the government revoked four out of five active nickel mining permits in the archipelago, but has allowed one company, on the island of Gag, to continue operating. That company, PT Gag Nikel, currently ships its ore to an industrial park about 250 kilometers (155 miles) away for processing.
But it may not need to go that far if the government has its way. According to the Greenpeace report, there are plans to build both a nickel smelter and a steel plant in the city of Sorong, about 160 km (100 mi) east of Gag, on the mainland.
Early in 2024, the local government reportedly entered into agreements with investors to develop these plants, which would reportedly occupy 1,000 hectares (about 2,500 acres) of land inside the Sorong Special Economic Zone. Chinese companies Sheng Wei New Energy Technology and Beijing Jianlong Heavy Industry Group are said to be backing the nickel smelter and the steel plant, respectively.
Gag Nikel, the owner of the only active and legal nickel mining concession in Raja Ampat for now, had also expressed its intention to build a nickel smelter in Sorong in 2022. It's not clear whether the company is involved in the project.
Groundbreaking for the project was scheduled for June 2024, but as of May 2025 there were no visible signs of construction work, according to Greenpeace. This is likely due to the recent drop in global nickel prices and a reported domestic shortage of nickel ore in Indonesia, with the country starting to import nickel from the Solomon Islands and New Caledonia in June, Greenpeace's Arie said.
However, the level of detail in the reported Sorong plan reinforces the extent of the threat from the nickel industry to the future of Raja Ampat, Greenpeace said in its report.
Most recently, the minister of mines, Bahlil Lahadalia, said the government is reviewing the smelter project in Sorong.
There are a number of aspirations about mining in Papua, especially in Raja Ampat, they want a smelter there, he said as quoted by local news site Tempo on June 3.
If the smelter project goes ahead, it could create pressure to reactivate previously canceled mining permits, Arie said. In addition to Gag Nikel's ongoing operations, the four recently revoked concessions, and the three currently winding their way through court, there are eight other canceled or expired concessions that could be revived, the Greenpeace report warns.
The fact that Raja Ampat's nickel is among the highest quality in Indonesia could be further incentive for such a revival, Arie said.
If this smelter project proceeds, it's likely that the dormant concessions [that have been revoked] will be reactivated, he said, because where else will you get the nickel from if not from the nearest source?
To that end, Greenpeace is also calling for the cancellation of the nickel and steel plants in Sorong.
In response, Dwi Januanto Nugroho, head of law enforcement at the Ministry of Forestry, welcomed the input from Greenpeace, saying the controversy over nickel mining in Raja Ampat is an opportunity to consider reforms in the mining sector.