The Weda region in Central Halmahera has become the focus of discussions about nickel downstreaming in Indonesia. Along with the development of industrial zones and nickel smelters, various environmental and social impacts have begun to draw attention from the public and civil society.
An investigation by Narasi found potential links between mining activities and the pollution of the Sagea River. The Sagea karst is formed by interactions between surface rivers and underground streams. There are three surface river basins that flow into this system. Among them, water passes through Legaelol Cave, enters a 6-kilometer-long underground river, and re-emerges through Bokimoruru Cave.
To test the hypothesis of hydrological connectivity, we released a safe fluorescein dye into Legaelol Cave. After more than 20 hours, the dye appeared in Bokimoruru Cave—this experiment confirmed the connection between the upstream and downstream parts of the river. “From the north to the east, since all three rivers feed into the limestone karst. That’s the boundary set by these rivers,” said Aziz Fardhani Jaya, a researcher at Forest Watch Indonesia.
The upstream area now falls within the concession of PT Halmahera Sukses Mineral (HSM), half of which is owned by Chinese investors managing the IWIP industrial area. Near HSM is PT Weda Bay Nickel (WBN), which began land clearing in West Limber Block in early 2023.
In the Environmental Impact Analysis (ANDAL) document obtained by us, WBN stated it would build a washing plant in East Limber Block. The problem is, this washing plant requires a large volume of water, which they plan to extract from the Yonelo River.
Strangely, this information was unknown to Sagea Village Head, Arif Thaib. “They told us they were going to build a clean water facility, right here nearby—not over there. They lied,” he told Narasi.
PT Weda Bay Nickel (WBN), in its response to Narasi’s investigative team, stated that their mining operations have complied with the permits and environmental documents they possess. WBN asserted that their ANDAL documents and environmental management plans were developed with precautionary principles and refer to national regulations, including those of the Ministry of Environment.
Suboptimal Sediment Pond Management
Sediment ponds are wastewater containment basins designed to filter sediments and solid materials before the water is released into the environment. This system acts as the front line in preventing river pollution, especially in karst ecosystems like Weda.
In their ANDAL document, WBN committed to building several sediment ponds across its mining blocks, including in Southwest Kao Rahai Block, Tofu Block, and Biri-Biri Block. However, satellite imagery and field verification revealed inconsistencies between the plan and its implementation.
In Southwest Kao Rahai Block, our team found only a few operational sediment ponds out of at least 15 listed in the ANDAL. Some ponds appeared dry, covered in mud, or were not functioning properly. In Tofu Block, sediment ponds were barely identifiable, and if present, were filled with sludge and lacked an effective drainage system.
The situation was different in Biri-Biri Block. Its proximity to residential areas and the IWIP industrial zone resulted in better maintenance. The sediment ponds there were well-managed, with protective vegetation and more organized drainage systems. This quality gap indicates a prioritization based on visibility rather than the level of pollution risk.
A former WBN environmental staff member we interviewed revealed that he had once proposed technical improvements to the sediment ponds. “The water coming out of this pond looked like coffee. I proposed a minor fix, but it was flatly rejected,” said Ocie—a pseudonym. He added that the color of the water was a clear indicator that the filtration process was not functioning properly.
Internal self-assessment documents from WBN, obtained from an official in the Ministry of Environment and Forestry, reinforced these concerns. Out of 27 water monitoring points, 15 showed pollution levels ranging from mild to severe. However, in its public reports, WBN stated that the water quality in the Sagea River remained within safe limits and met quality standards.
In response, WBN stated in an official letter that all sediment ponds were built and managed according to applicable regulations. They said the ponds were designed based on best practices and had undergone third-party audits. They also mentioned that water quality monitoring was conducted routinely and reported electronically to the Ministry.
WBN added: “The company is committed to ensuring all wastewater management activities follow the precautionary principle. If discrepancies are found, immediate corrections are made.”
Muhammad Aris, an environmental researcher at Khairun University, stated that failed sediment pond management has severely degraded the water quality of the Sagea River. “Livestock are dying. Fish can’t survive here,” he explained.
Air Pollution and Acid Rain Concerns
Besides water, the air around the industrial zone is also a growing concern. Monitoring via the Sentinel-5P satellite shows increased concentrations of Nitrogen Dioxide (NO₂) and Sulfur Dioxide (SO₂) since the smelters began operating. These compounds are known to react and form acid rain.
Rainwater samples collected from the area showed a pH range of 4.35 to 4.85—lower than normal thresholds. Several farmers reported a decline in crop yields and changes in soil conditions. Agricultural plant leaves were yellowing and drying more quickly. Local farmers reported a significant drop in harvests. “We have to buy vegetables from outside. Imagine, living in an agricultural village but buying vegetables,” said Ahmad, a farmer in Lelilef Waibulan village.
The fishing sector has also felt the impact. Fishermen complained of murkier seawater and a drastic drop in catches. Abdullah, a fisherman from Gemaf village, said: “We have to go farther out to sea. Fish that depend on coral reefs are harder to find.”
Health facility data from Lelilef and Sagea health centers recorded a spike in Acute Respiratory Infection (ARI) cases. In Lelilef, cases rose from around 400 to over 10,000 per year.
In response to these findings, IWIP stated that air monitoring and emission systems have been installed and are being managed in accordance with regulations. In a written response, they said: “WBN uses a Continuous Emission Monitoring System (CEMS) to monitor real-time emissions from main combustion facilities.”
They also noted that emission filters (scrubbers and bag filters) function to reduce harmful gas emissions before release into the air. Regarding the yellowish smoke color, WBN clarified that it does not always indicate harmful emissions and could be caused by high humidity or specific technical conditions still within safe limits.
Corruption and Environmental Data Manipulation
In a written response, WBN stated that the mining wastewater sediment ponds are equipped with a sparring test monitoring system, with results automatically sent to the Ministry of Environment’s monitoring system.
Eramet, a French company that owns shares in WBN, echoed the same in their email response to us. These two statements imply that, technically, the government should be aware of any pollution spikes or sediment pond failures.
A small example can be seen in the PROPER assessment, a Ministry rating system for companies’ environmental performance. PROPER ratings range from Gold, Green, Blue, Red to Black. But in practice, this status can be traded.
“I was one of the persons coordinating these processes. On one occasion, we got invited to celebrate the 'blue proper' qualification for environmental management, but the company had bribed the wrong person, and we learnt we got the red one instead. But that applied to other certifications as well. The government found out about it. The company gets all its ISO certification, clearances and status through bribes. It’s common knowledge there,” said Ocie Belecier, an Eramet employee whose name has been changed for safety reasons.
“They even falsify environmental reporting data. The Jakarta office does not seem aware of this. I had to stop working with them when realizing what kind of risks their management is creating and was even asked to modify some of my data as a 'tick box' for them to get environmental clearance,” added another former Eramet employee.
The Ministry of Environment and WBN declined to comment on these allegations. The Deputy for Pollution and Environmental Damage Control, Rasio Ridho Sani, promised to grant an interview if sent a detailed list of questions. After we sent them, he never responded.
Another issue: when several internal staff at WBN and Eramet began questioning the quality of environmental data and management systems, the company’s response was not reform—but silencing. “I was ordered not to speak. My access to the environmental management server was revoked. The information provided to me was curated. In that condition, it was impossible to do my job effectively.”
Another former employee revealed that after an internal environmental audit report was sent to Eramet’s Paris headquarters, WBN’s entire IT system was suddenly hacked. Several computers were confiscated, personal laptops taken, and important documents deleted. He believes the incident was not an external attack, but an internal operation to erase evidence.
WBN responded to these claims: “WBN is committed to protecting employee rights, including those who report concerns honestly and professionally. All incoming reports will be followed up according to applicable internal procedures,” they wrote to Narasi.
Chapter III: Ore Trade and the Elite Network Trail
The transport of nickel ore in and out of the Weda Bay industrial area illustrates the massive scale of production and distribution. Over the past two years (2023–2024), logistics data from Weda Port recorded over 36 million tons of nickel ore entering and leaving the area. Besides loading ore from Weda’s own mines, the port also serves as a hub for ore from other regions, including Gebe Island, Gag Island, and Tanjung Buli.
About 35 percent of the ore comes from mines in East Halmahera, especially from Tanjung Buli. There, several mining companies actively exploit small islands like Pakal, Mabuli, and Gei. Many concessions in this area are controlled by PT Aneka Tambang (Antam), a state-owned mining company that also owns 10 percent of shares in PT Indonesia Weda Bay Industrial Park (IWIP).
Not only from within the country, large quantities of ore are also imported. Shipping data shows about 6 million tons of nickel ore were brought to Weda from Southern Philippines, mainly from Surigao del Norte—a region also known for similar issues: mining exploitation affecting Indigenous communities and coastal environments.
This situation reveals that nickel downstreaming in Weda does not rely solely on local mines but also draws supply from various regions and countries. The IWIP industrial zone is the central hub of this logistics network, supported by numerous small ports in and beyond Maluku.
Behind this complex logistical chain are names of concession holders affiliated with national business elites. For instance, PT Wana Halmahera Barat Permai and PT Wana Kencana Mineral are reportedly linked to a business group owned by Tomy Winata. In these two companies, the names Harun Ngadimin and Wahid Ngadimin appear—both are Tomy Winata’s siblings—as well as Eddy Winata, a long-trusted family associate.
A Tempo investigation in the 1990s once named Eddy as a key figure in an informal business network, including gambling and entertainment. Today, Eddy Winata is listed as commissioner in several nickel mining companies in Halmahera.
Elsewhere, concessions on Gebe Island follow a similar pattern. Three companies—PT Smart Marsindo, PT Aneka Niaga Prima, and PT Bartha Putra Mulia—operate there. All three are linked to PDIP politician Shanty Alda Nathalia, also known as Shanty Baramuli. Though her name is no longer officially listed in the AHU administrative system, shareholder structures suggest the main shareholder companies are still owned by her.
The presence of active politicians as mine owners or operators raises concerns of conflict of interest, particularly as Shanty currently serves in Commission XII of the House of Representatives, overseeing environmental and energy issues. In one hearing with IWIP, her remarks sounded more like business complaints than representing affected communities.
“Often, ore grade results at the loading port and the unloading port differ significantly. The difference can be 0.05 to 0.1 percent. This really hurts miners,” she said during the forum.
We attempted to contact Shanty Alda Nathalia—via personal contacts, staff, and her DPR office—but received no response. Clarification efforts were also made to PT Smart Marsindo and other affiliated companies, with similar outcomes.
The pattern of mine ownership by political and economic elites shows that the nickel industry in Halmahera is not just an ordinary business entity. It is closely tied to power—through regulation, licensing, and control over supply chains and profits.
In response, PT WBN stated in its letter that it only manages mines in accordance with its official permits and is not involved in procuring ore from outside its concession area. Regarding the broader supply chain and other ore suppliers, WBN said procurement is handled by downstream industry partners within the IWIP zone, not by WBN directly.
This investigation was developed with the support of Journalismfund Europe.