Profile of PT Gag Nikel, the Raja Ampat Mining Company Whose Permit Was Not Revoked
Jakarta: The mining controversy has resurfaced in Raja Ampat. On Tuesday, 10 June 2025, the government, through the Ministry of Energy and Mineral Resources (ESDM), revoked the Mining Business Permits (IUP) of four mining companies operating on small islands and in forest areas.
However, one company was allowed to continue operating: PT Gag Nikel. ESDM Minister Bahlil Lahadalia stated that PT Gag possesses complete Environmental Impact Assessment (AMDAL) documentation and constitutes a state asset.
"It is, thankfully, in compliance with its AMDAL, and it is also part of state assets," said Bahlil at the Presidential Palace, Jakarta, on 10 June 2025.
PT Gag Nikel has drawn scrutiny for retaining its permit whilst four other companies — PT Anugerah Surya Pratama, PT Nurham, PT Mulia Raymond Perkasa, and PT Kawei Sejahtera Mining — had theirs revoked for violating provisions under Law No. 1 of 2014 and Law No. 41 of 1999.
The company has a long history and, under a Presidential Decree issued by President Megawati, was one of the mining companies granted special rights to operate in protected forests.
History and Ownership of PT Gag Nikel
PT Gag Nikel is a subsidiary of PT Aneka Tambang Tbk (Antam), which is part of the MIND ID state-owned mining holding company. Its concession area is located on Gag Island, Raja Ampat Regency, Southwest Papua. According to Responsible Mining Indonesia, the company holds a seventh-generation Contract of Work and controls a mining area of 13,136 hectares.
PT Gag Nikel is a seventh-generation mining company approved by President Soeharto in 1998, originally a joint venture between BHP Billiton-Asia Pacific Nickel (75%), an Australian mining company, and PT Antam (28%).
However, BHP Billiton withdrew from the project in 2008, and PT Antam subsequently acquired 100 per cent of the Australian company's shares. As a result, PT Antam now fully controls PT Gag.
According to the ESDM Minister, the company had actually been active since the 1970s, though exploitation activities were suspended for a period. It was only in 2017 that PT Gag began constructing facilities before proceeding to the production phase.
"Of all these companies, the only one granted an RKAB (Annual Work and Budget Plan) for 2025 is PT Gag Nikel; the others were not granted one. PT Gag Nikel's history dates back to 1972, when exploration first began," said the ESDM Minister on 10 June 2025.
Permitted to Mine in Protected Forests
PT Gag obtained legal legitimacy to operate in protected forest areas under Presidential Decree No. 41 of 2004. Under this decree, PT Gag was included in a list of 13 companies permitted to continue mining activities within forest areas, provided they met forest area loan-use permit requirements.
"Mining in protected forests is not permitted, except for 13 companies including PT GN, which are allowed under Law No. 19 of 2004, thus making their mining activities legal," said Environment and Forestry Minister Hanif Faisol Nurofiq in Central Jakarta on 8 June 2025.
Despite operating in a sensitive area, the government stated that PT Gag's activities would be strictly monitored. President Prabowo Subianto is said to have issued direct instructions for intensive environmental oversight.
"As long as we properly supervise, in accordance with the President's directives. We must closely monitor the environment," said Bahlil at the Presidential Palace on 10 June 2025.
PT Gag also claims to have implemented sustainable and responsible mining principles, stating that its operations comply with its AMDAL and that it is committed to preserving surrounding marine ecosystems, including coral reefs.
Deforestation on Gag Island
However, criticism of mining on a small island such as Gag persists. Gag Island covers only 60 square kilometres, and under Law No. 1 of 2014, small islands (under 2,000 square kilometres) are not prioritised for mining activities. The decision not to revoke PT Gag's permit has sparked debate amid Indonesia's commitment to protecting small islands and forest areas from excessive exploitation.
The Indonesian Nickel Miners Association stated that the company operates far from conservation areas and has implemented environmentally friendly policies.
"We have verified this. PT Gag is far from conservation areas and has been conducting mining in accordance with regulations," said Meidy to reporters on Tuesday, 10 June 2025.
However, recent satellite imagery reveals significant changes to Gag Island's landscape. Satellite images from 13 March 2017 show the island still covered in green forest vegetation. By contrast, images from 29 April 2025 clearly show that much of the island's central area has been cleared and degraded, marked by extensive brown patches in the centre of the island.
This area is believed to be an active mining zone, and the vegetation changes indicate the tangible impact of ongoing mining activities. Beyond deforestation on land, mining activities have also affected the marine environment.
According to Responsible Mining Indonesia, since operations began in 2018, the coastal waters around Gag Island have frequently appeared turbid and muddy, presumably due to sedimentation from forest clearing and the construction of a mining jetty. Sediment covers the seabed, seagrass, and coral reefs along the coast. Previously clear seawater has changed colour and now threatens marine life.
Responsible Mining Indonesia also notes that the indigenous Kawei people, as holders of customary land rights over Gag Island, have not been fully involved in the permitting and exploitation processes. To date, they have received no clarity regarding their customary land release rights or involvement in mining activities.
Strict oversight, transparency, and independent environmental audits are essential to ensure the environmental sustainability of Gag Island as part of the globally invaluable Raja Ampat ecosystem.
However, one company was allowed to continue operating: PT Gag Nikel. ESDM Minister Bahlil Lahadalia stated that PT Gag possesses complete Environmental Impact Assessment (AMDAL) documentation and constitutes a state asset.
"It is, thankfully, in compliance with its AMDAL, and it is also part of state assets," said Bahlil at the Presidential Palace, Jakarta, on 10 June 2025.
PT Gag Nikel has drawn scrutiny for retaining its permit whilst four other companies — PT Anugerah Surya Pratama, PT Nurham, PT Mulia Raymond Perkasa, and PT Kawei Sejahtera Mining — had theirs revoked for violating provisions under Law No. 1 of 2014 and Law No. 41 of 1999.
The company has a long history and, under a Presidential Decree issued by President Megawati, was one of the mining companies granted special rights to operate in protected forests.
History and Ownership of PT Gag Nikel
PT Gag Nikel is a subsidiary of PT Aneka Tambang Tbk (Antam), which is part of the MIND ID state-owned mining holding company. Its concession area is located on Gag Island, Raja Ampat Regency, Southwest Papua. According to Responsible Mining Indonesia, the company holds a seventh-generation Contract of Work and controls a mining area of 13,136 hectares.
PT Gag Nikel is a seventh-generation mining company approved by President Soeharto in 1998, originally a joint venture between BHP Billiton-Asia Pacific Nickel (75%), an Australian mining company, and PT Antam (28%).
However, BHP Billiton withdrew from the project in 2008, and PT Antam subsequently acquired 100 per cent of the Australian company's shares. As a result, PT Antam now fully controls PT Gag.
According to the ESDM Minister, the company had actually been active since the 1970s, though exploitation activities were suspended for a period. It was only in 2017 that PT Gag began constructing facilities before proceeding to the production phase.
"Of all these companies, the only one granted an RKAB (Annual Work and Budget Plan) for 2025 is PT Gag Nikel; the others were not granted one. PT Gag Nikel's history dates back to 1972, when exploration first began," said the ESDM Minister on 10 June 2025.
Permitted to Mine in Protected Forests
PT Gag obtained legal legitimacy to operate in protected forest areas under Presidential Decree No. 41 of 2004. Under this decree, PT Gag was included in a list of 13 companies permitted to continue mining activities within forest areas, provided they met forest area loan-use permit requirements.
"Mining in protected forests is not permitted, except for 13 companies including PT GN, which are allowed under Law No. 19 of 2004, thus making their mining activities legal," said Environment and Forestry Minister Hanif Faisol Nurofiq in Central Jakarta on 8 June 2025.
Despite operating in a sensitive area, the government stated that PT Gag's activities would be strictly monitored. President Prabowo Subianto is said to have issued direct instructions for intensive environmental oversight.
"As long as we properly supervise, in accordance with the President's directives. We must closely monitor the environment," said Bahlil at the Presidential Palace on 10 June 2025.
PT Gag also claims to have implemented sustainable and responsible mining principles, stating that its operations comply with its AMDAL and that it is committed to preserving surrounding marine ecosystems, including coral reefs.
Deforestation on Gag Island
However, criticism of mining on a small island such as Gag persists. Gag Island covers only 60 square kilometres, and under Law No. 1 of 2014, small islands (under 2,000 square kilometres) are not prioritised for mining activities. The decision not to revoke PT Gag's permit has sparked debate amid Indonesia's commitment to protecting small islands and forest areas from excessive exploitation.
The Indonesian Nickel Miners Association stated that the company operates far from conservation areas and has implemented environmentally friendly policies.
"We have verified this. PT Gag is far from conservation areas and has been conducting mining in accordance with regulations," said Meidy to reporters on Tuesday, 10 June 2025.
However, recent satellite imagery reveals significant changes to Gag Island's landscape. Satellite images from 13 March 2017 show the island still covered in green forest vegetation. By contrast, images from 29 April 2025 clearly show that much of the island's central area has been cleared and degraded, marked by extensive brown patches in the centre of the island.
This area is believed to be an active mining zone, and the vegetation changes indicate the tangible impact of ongoing mining activities. Beyond deforestation on land, mining activities have also affected the marine environment.
According to Responsible Mining Indonesia, since operations began in 2018, the coastal waters around Gag Island have frequently appeared turbid and muddy, presumably due to sedimentation from forest clearing and the construction of a mining jetty. Sediment covers the seabed, seagrass, and coral reefs along the coast. Previously clear seawater has changed colour and now threatens marine life.
Responsible Mining Indonesia also notes that the indigenous Kawei people, as holders of customary land rights over Gag Island, have not been fully involved in the permitting and exploitation processes. To date, they have received no clarity regarding their customary land release rights or involvement in mining activities.
Strict oversight, transparency, and independent environmental audits are essential to ensure the environmental sustainability of Gag Island as part of the globally invaluable Raja Ampat ecosystem.