JAKARTA: Indonesia revoked permits on Tuesday (Jun 10) for four of the five mining companies operating in the eastern archipelago of Raja Ampat after activists shared videos of islands damaged by nickel extraction.
The cluster of islands and shoals in Southwest Papua Province sits in the Coral Triangle and is thought to be one of the world's most pristine reefs, with its clear blue waters making it a popular diving spot.
Last week, Greenpeace Indonesia published videos highlighting nickel mining projects on three islands, including one which racked up more than 15 million Instagram views.
President Prabowo Subianto "decided that the government will revoke the mining business license of four companies in Raja Ampat", state secretariat minister Prasetyo Hadi told reporters.
Energy and mineral resources minister Bahlil Lahadalia said "they have violated" regulations.
"We believe this region must be protected," he said.
Greenpeace said nickel exploitation on the islands of Gag, Kawe and Manuran had led to the destruction of more than 500 hectares of forest and vegetation.
It led to growing calls for the licences to be withdrawn from politicians and celebrities.
The four companies impacted by the immediate ban are PT Anugerah Surya Pratama, PT Nurham, PT Kawei Sejahtera Mining and PT Mulia Raymond Perkasa.
PT Nurham received its mining permits this year and has not started production but the other three have had them since 2013, according to the energy ministry.
One more company - PT Gag Nikel - will continue to operate on Raja Ampat's Gag island but be closely monitored, said Bahlil. It received its operational permit in 2017.
Indonesia has the world's largest nickel reserves and is the biggest producer of the metal, which is used in electric vehicle batteries and stainless steel.
Greenpeace Indonesia said the decision was a good start but the government needed to take further action.
"We appreciate this decision but we need to make sure the decision will be implemented. We need to make sure they stop," forest campaign team leader Arie Rompas said.
He warned the government could reissue the permits later or the companies could appeal the decision in court.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.