Category: Commodities

After decades of talk and talk, The Ministry of Energy and Mineral Resources, through the Directorate General of New, Renewable Energy and Energy Conservation, recently revealed that Indonesia will begin the construction of its first ocean current power plant with a total capacity of 40 MW, targeted to operate in 2028. The said power plant will require an investment of around US$220 million (approximately Rp3.58 trillion).

Attorney General’s Office (AGO) claimed of having seized the assets of PT Orbit Terminal Merak (OTM) reportedly owned by Kerry Riza, son of oil and gas godfather Riza Chalid, once a big financier of Prabowo’s campaign.

The central government’s decision to transfer administrative control of four small islands from Aceh to North Sumatra is not merely a matter of territorial adjustment. It represents a significant political and economic shift—particularly over access to valuable offshore oil and gas resources. Issued through Minister of Home Affairs Decree No. 300.2.2-2138 of 2025, the islands of Lipan, Panjang, Mangkir Ketek, and Mangkir Gadang—previously under the jurisdiction of Aceh Singkil—are now officially part of Tapanuli Tengah, North Sumatra.

In the span of time when the environmental conditions in Raja Ampat started going viral, various parties immediately took positions. Some sided with the Government, while others positioned themselves to support environmental activists. Of course, we admit that there are parties who try to control public opinion to be pro-mining, however, we cannot ignore the fact that the narrative used by the opposite party is sad.

We know what has been making headlines in Indonesia in recent weeks: nickel mining activities in the Last Paradise, Raja Ampat. Amidst public outcry and the vast spread of misinformation, on the afternoon of June 10, 2025, the central Government finally announced that it had revoked the business licenses previously granted to four mining companies, leaving only one mining company, PT Gag Nikel (PT GN), a subsidiary of PT Aneka Tambang Tbk (Aneka Tambang – ANTM), to have the legal rights to carry on their business. This decision needs to be appreciated, but there is still a lot of homework to be done, including evaluating mining operations in other parts of Indonesia and clarifying all the misinformation that has been circulating. 

The plan to exploit nickel reserves on Gag Island is contentious. The island lies within Raja Ampat’s conservation area, a globally significant biodiversity hotspot. Yet beneath its rich ecosystems lie laterite nickel deposits now coveted in the race to supply electric vehicle batteries. The conflict, therefore, is not merely between ecology and economy, or between local communities and corporate interest—it’s also a fight over narrative control in Indonesia’s digital sphere.

As explained in previous articles, we cannot deny that mining activities are closely related to environmental damage and if we refer to the legal regulations regarding the management of coastal areas and the small islands, then nickel mining activities carried out on several small islands in Raja Ampat should not be allowed, there are bigger issues than the potential destruction of tourist destinations. However, as mentioned, this is not as easy as it seems. 

The decision of the Minister of Environment and also the Minister of Energy and Mineral Resources to examine mining activities in Raja Ampat is right. The Ministers state that mining on the coastal area and small islands is a form of denial of the principle of intergenerational justice and at first glance, by law, this is also true. However, as mentioned, the complexity of Indonesian laws and regulations should not be taken lightly. This is where the Government must act more carefully. 

If there is something most confusing about Indonesia, it is almost certainly the complexity of regulations and the division of authority between the central Government and regional governments. In the past two weeks, this is what has caused a commotion. The source of the problem: there is nickel mining activity in Raja Ampat, a regency which was previously part of West Papua but has been part of a newly-established Southwest Papua since 2022. 

Bahlil Lahadalia, Minister of Energy and Mineral Resources, ordered a temporary halt to the exploitative nickel mining activities in Raja Ampat, Southwest Papua province following the protest by environmental activists on June 3, 2025. People have been continuously sharing the #SaveRajaAmpat hashtag on social media platforms to show their concern about it ever since then, while Minister of Environment Hanif Faisol recently said the mining does not have serious impacts on the environment.