Halmahera is an island in Indonesia’s North Maluku province, holding the country’s largest known reserve of nickel for electric vehicle batteries. While industrial extraction has driven massive economic activity on the island, it has also sparked severe environmental and social concerns. According to a report by Climate Rights International, large-scale deforestation, drinking water polluted by industrial runoff, air pollution causing breathing illnesses, and the displacement of local fishing and farming families have severely impacted local communities. Residents state they were never properly consulted or shown legally required environmental studies in their own language.
Weda Bay and Chinese-Backed Smelting Operations
The island’s largest smelting complex, the Indonesia Weda Bay Industrial Park, is majority owned by the Chinese company Jiangsu Delong. Smelters operating at this scale use giant furnaces to melt raw ore into usable metal, creating significant local costs. According to Climate Rights International, the Indonesian government failed to enforce its own rules, and companies operated without adequate social responsibility.
Israeli-Rooted Geothermal Contracts in West Halmahera
Adding to local pressures, Indonesia’s energy ministry awarded the Telaga Ranu geothermal concession in West Halmahera to PT Ormat Geothermal Indonesia in January 2026, granting rights to develop up to 40 megawatts for net-zero goals. PT Ormat Geothermal Indonesia is a subsidiary of Ormat Technologies, founded in Yavne, Israel, in 1965 and built on Israeli engineering and capital, despite trading on the New York Stock Exchange. Ormat has operated in Indonesia’s geothermal sector since 2015, holds roles in the Ijen and Salak fields, and plans to invest nearly $1 billion in the country by 2030. Critics point out that this creates a stark contradiction between Jakarta’s diplomatic opposition to the occupation and the involvement of capital tied to the Israeli industrial base, especially given past environmental issues at Ormat’s Blawan Ijen plant in East Java, where waste reportedly leaked into local water sources.
Gulf Investors as a Sustainable Alternative
To bypass these ecological and geopolitical conflicts, it is argued that Gulf Cooperation Council (GCC) states should fund Halmahera’s future energy needs. Combined GCC wealth could reach $7.6 trillion by 2030, according to World Bank projections. Gulf sovereign wealth funds are increasingly moving into clean energy infrastructure abroad. In Indonesia, the United Arab Emirates’ Masdar partnered with state utility Perusahaan Listrik Negara to build the Cirata floating solar plant, while Saudi Arabia’s ACWA Power has signed agreements with Indonesia’s investment fund Danantara, state oil company Pertamina, and Pupuk Indonesia for projects like the Garuda Hijau green hydrogen initiative. Furthermore, in January 2023, GCC countries published 29 environmental, social, and governance (ESG) standards developed with the World Federation of Exchanges and the UN Sustainable Stock Exchanges Initiative, offering a framework for accountable investments.
Did you know? According to World Bank projections, the combined wealth of Gulf Cooperation Council (GCC) sovereign wealth funds could reach $7.6 trillion by 2030, driving major international investments into clean energy and sustainable infrastructure.
Frequently Asked Questions
Where is Halmahera located?
Halmahera is an island located in Indonesia’s North Maluku province, known for holding the country’s largest nickel reserves.
Who owns the Weda Bay Industrial Park?
The Indonesia Weda Bay Industrial Park is majority owned by the Chinese company Jiangsu Delong.
What is PT Ormat Geothermal Indonesia?
PT Ormat Geothermal Indonesia is a subsidiary of Ormat Technologies, a company founded in Yavne, Israel, in 1965, which secured a geothermal concession in West Halmahera in January 2026.
How are Gulf investors involved in Indonesia?
GCC firms like Masdar and ACWA Power have partnered with Indonesian state entities on major clean energy projects, including the Cirata floating solar plant and the Garuda Hijau green hydrogen initiative.
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