TEMPO.CO, Jakarta - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that PT Gag Nikel, a nickel mining company operating on Gag Island in Raja Ampat Regency, West Papua, has been active since 1972. As a subsidiary of PT Aneka Tambang (Persero) Tbk, or Antam, it is the only company whose Mining Business License (IUP) remains valid and has not been revoked.
"PT Gag Nikel has a history of exploration since 1972. Then, the signing of its Contract of Work (KK) was in 1998 (February 19, 1998)," Bahlil said during a press conference at the Presidential Palace in Jakarta on Tuesday, June 10, 2025.
Bahlil provided a detailed timeline of PT Gag Nikel's licensing history:
1972: initial exploration of Gag Island
February 19, 1998: signing of the Contract of Work for PT Gag Nikel's exploration
1999 to 2002: exploration phase
2006 to 2008: extension of the exploration phase
2008 to 2013: feasibility study phase
2015 to 2017: construction activity phase
November 30, 2017: start of the production operation phase, with a license valid until November 30, 2047
On a different occasion, Bahlil explained that PT Gag Nikel holds a Generation VII Contract of Work under Number B53/Pres/I/1998, which was officially granted on January 19, 1998, after being signed by Indonesia’s 2nd President, Soeharto.
A Contract of Work is an agreement between the government and a company that allows the company to carry out mineral and coal mining activities.
One year after PT Gag Nikel received its Contract of Work, the government issued a regulation prohibiting mining in protected forest areas under Forestry Law Number 41 of 1999. According to Article 38 paragraph (4) of the law, "In protected forest areas, mining with open mining methods is prohibited." This law was signed by the 3rd President of Indonesia, Bacharuddin Jusuf Habibie.
However, this rule was later amended during the presidency of the 5th President, Megawati Soekarnoputri. Mining companies with Contract of Works issued during the New Order era were granted exceptions. This was formalized under Law Number 19 of 2004 concerning the ratification of Government Regulation in Lieu of Law (Perppu) Number 1 of 2004, which amended Forestry Law Number 41 of 1999.
Initially, PT Gag Nikel's ownership was divided between Asia Pacific Nickel Pty Ltd, which held 75 percent of the shares, and PT Antam Tbk, which held the remaining 25 percent. In 2008, PT Antam Tbk acquired all shares from APN Pty Ltd and became the sole owner of PT Gag Nikel.
Later, on November 30, 2017, PT Gag Nikel was granted a new Contract of Work permit, which was registered in the Mineral One Data Indonesia (MODI) system through the ESDM Minister’s Decree Number 430.K/30/DJB/2017. The company was authorized to manage a mining area of 13,136 hectares.
At the time, the Ministry of Energy and Mineral Resources was led by Ignasius Jonan. PT Gag Nikel began operations a year later in 2018, during the first term of the 7th President of Indonesia, Joko Widodo.
"When the mining business license was issued, I was still the Chairperson of Hipmi (Indonesian Young Entrepreneurs Association), Chairman of BPP (Central Executive Board) Hipmi, and had not yet joined the Cabinet (Working Cabinet 2014-2019)," said Bahlil during a press conference at the ESDM Ministry in Jakarta on Thursday, June 5, 2025.
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