Jakarta. The Energy and Mineral Resources (ESDM) Ministry has temporarily suspended operations at nickel miner Gag Nikel in Raja Ampat, Southwest Papua, following concerns over environmental damage in the popular marine tourism region.

Minister Bahlil Lahadalia announced the suspension on Thursday, saying it would remain in effect pending a field verification by the ministry’s Directorate General of Mineral and Coal (Minerba).

“We’ve decided to halt all operations of Gag Nikel until the verification process is completed,” Bahlil told reporters at the ESDM office in Jakarta. He added that he plans to personally visit Gag Island in Raja Ampat to assess the situation and hear directly from local communities.

Gag Nikel, operating under a Contract of Work (KK) since 2017, has held environmental permits (AMDAL) since before Bahlil’s tenure as minister began. While stressing the company’s legal status, Bahlil said he wants an objective assessment of alleged environmental degradation tied to the mining site.

Initial inspections have already been conducted by ESDM teams, triggered by growing public reports of damage to Raja Ampat’s coastal and marine ecosystems, one of Indonesia’s most prized natural assets.

“As a government official, I’m committed to listening to local concerns. I’ll make time to go to Raja Ampat and speak with the people,” Bahlil said on Friday after attending Eid prayers at the Golkar Party headquarters in Jakarta.

President Prabowo Subianto has also reportedly been briefed on the issue. Bahlil confirmed he regularly updates the President on developments in the energy and mineral resources sector.

Meanwhile, Gag Nikel said it fully supports the government’s verification process. Arya Arditya, the company’s acting president director, said Gag Nikel operates with complete legal permits and follows “good mining practices.”

The company claims it has consistently coordinated with the Environment and Forestry Ministries, operates outside any conservation or UNESCO geopark areas, and is actively engaged in environmental and sustainability programs.

Arya said Gag Nikel has rehabilitated over 666 hectares of watershed areas and reclaimed more than 136 hectares of mined land as of April 2025. The company also claims to have planted over 350,000 trees, including 70,000 endemic species.

Environmental monitoring data from 2024 shows pollution levels -- such as SO₂, NO₂, PM₁₀, and PM₂.₅ -- remain well below regulatory limits. Wastewater quality, noise levels, and heavy metal content like Chromium VI were also reported to be within safe thresholds.

“Gag Nikel’s presence in Raja Ampat shows that mining and conservation can go hand-in-hand with proper oversight and responsibility,” Arya said.

Originally, Gag Nikel was a joint venture between Australia-based Asia Pacific Nickel Pty. Ltd. (APN Pty. Ltd), which held a 75 percent stake, and publicly-listed company Aneka Tambang (Antam) with 25 percent. However, in 2008, Antam acquired all shares previously held by APN, making Gag Nikel a fully owned subsidiary of the Indonesian state-owned mining company.

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