Observer: IPW Needs to Objectively Evaluate the PT ARA Case, Nickel Licensing is Already Very Strict

Illustration (Photo: ANTARA)

JAKARTA - The Executive Director of Indonesia Mining & Energy Watch, Ferdy Hasiman, asked the Indonesia Police Watch (IPW) to be objective and neutral in assessing legal cases involving PT Alam Raya Abadi (ARA), a nickel mining company in Halmahera Timur, North Maluku.

According to Ferdy, the allegations of mafia practices and trade in influence conveyed by the IPW have not been fully accompanied by comprehensive verification.

He emphasized that the change of PT ARA's board of directors had been carried out through the General Meeting of Shareholders (RUPS) and was approved by the Ministry of Law and Human Rights.

Ferdy instead highlighted the track record of the former President Director of PT ARA, Liu Xun, who was said to have serious problems in corporate governance.

The internal audit of PT ARA for the period 2019-2020, he said, found allegations of embezzlement of funds of around US$ 15 million which had an impact on the company's tax obligations.

In addition, a report from Qichacha Technology Co., Ltd dated November 5, 2025, noted that Liu Xun was involved in at least 45 legal cases in China, ranging from bank credit disputes to shareholding conflicts.

In the context of licensing, Ferdy assessed that it was unlikely that the Directorate General of Minerba would pass the RKAB of a company that was legally problematic. "The RKAB process is very strict, starting from the ownership of IUP that is clear and clean, tax compliance, to environmental documents," he said.

He added that nickel sector regulations have been tightened since the enactment of Law No. 1 of 2025 concerning Minerba, including the obligation to build smelters and a ban on the sale of nickel ore without a permit.

Ferdy reminded that negative framing without a strong foundation risks disrupting investment in the nickel sector, which is currently one of the backbone of the national downstream industry.