Saving Halmahera Island in Indonesia from Israeli investment |
Despite cultivating a global reputation as a defender of Palestinian rights, Indonesia has approved a geothermal concession on Halmahera, a forested island in eastern Indonesia, involving a company embedded in Israel’s economic system. The decision carries two clear risks. It weakens Indonesia’s political position on Palestine and exposes a fragile environment to deeper industrial pressure. This is not only a foreign policy contradiction. It is a development choice with lasting ecological consequences.
On January 8, 2026, the Ministry of Energy and Mineral Resources awarded the Telaga Ranu geothermal working area to PT Ormat Geothermal Indonesia as part of the national push toward the Net Zero Emission 2060 target. Expanding renewable energy is necessary in a country still reliant on coal. Urgency, however, does not justify overlooking political alignment or environmental protection.
Large nickel complexes backed primarily by China have transformed parts of the island into processing hubs tied to the electric vehicle battery supply chain.
Large nickel complexes backed primarily by China have transformed parts of the island into processing hubs tied to the electric vehicle battery supply chain.
Halmahera is already under mounting global demand. Large nickel complexes backed primarily by China have transformed parts of the island into processing hubs tied to the electric vehicle battery supply chain. Investors connected to Japan and South Korea have financed smelters, captive power plants, and logistics networks to secure mineral access. Forest loss has accelerated in industrial zones. Coastal waters face rising stress. Communities are adjusting to abrupt economic change.
The geothermal concession adds another long term industrial footprint onto an ecosystem already absorbing cumulative impact.
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PT Ormat Geothermal Indonesia is controlled by Ormat Technologies, a firm built on Israeli engineering, manufacturing, and capital networks. Revenue and technology tied to the project will circulate through that system. Economic engagement at this scale carries political meaning.
Indonesia maintains no diplomatic relations with Israel and consistently voices support for Palestinian self determination. Deepening commercial ties with companies rooted in Israel creates a visible policy gap. When foreign policy messaging and economic behavior diverge, credibility declines. Moral positioning becomes harder to defend.
Environmental risk is not theoretical. Projects linked to Ormat Technologies elsewhere in Indonesia have damaged ecosystems and disrupted local communities.
When foreign policy messaging and economic behaviour diverge, credibility declines. Moral positioning becomes harder to defend.
When foreign policy messaging and economic behaviour diverge, credibility declines. Moral positioning becomes harder to defend.
At the Blawan Ijen Geothermal Power Plant, waste from a production well reportedly entered drainage channels and contaminated the Gending Waluh spring, the main water source for residents in Watu Capil, Kebon Jeruk, and Margahayu. Locals described foul tasting drinking water and bathwater that left a sticky residue on skin. Many households were forced to haul water from neighboring villages.
Contamination later spread to the Sumber Macan spring in Curah Macan. Residents reported stomach illness after consuming the water and abandoned the source. Some families began purchasing packaged water despite the added financial burden. Community complaints, according to local accounts, drew limited response.
On Buru Island near Wapsalit, exploration activity reportedly pushed Indigenous residents deeper into forest areas out of fear and uncertainty. Villagers said they received minimal explanation about the project or its risks. Development without transparency places communities in a position of exposure rather than participation.
These incidents matter because they show what can happen when geothermal expansion outruns oversight.
Halmahera lies within the Wallacea ecological zone, one of the most biologically distinctive regions on earth. Geothermal drilling can disrupt groundwater systems that support agriculture and fisheries. Road construction opens intact forest to further extraction. Transmission corridors fragment habitat. Once these pressures converge, reversal becomes unlikely.
Renewable energy reduces carbon emissions. It does not eliminate environmental cost. Across Indonesia, geothermal projects have triggered disputes over land rights, compensation, and uneven distribution of economic benefit. Communities often absorb environmental risk first while waiting years for promised growth.
Observers have also questioned the speed of the Telaga Ranu tender and the limited room for public consultation. Frontier regions rarely possess regulatory capacity equal to the scale of incoming investment. Transparency under these conditions is protection, not procedure.
The political and ecological risks converge on a single consequence. Indonesia damages its own integrity while damaging its own environment.
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For decades Indonesia has positioned itself as a consistent defender of Palestinian rights and has refused to establish diplomatic relations with Israel. That stance forms part of its international identity. Approving projects tied to companies embedded in Israel’s economic system cuts directly against that identity. It signals that political principle can yield to investment. Once that signal is sent, credibility weakens.
At the same time, the environmental costs fall on Indonesian land and communities. Halmahera absorbs new industrial risk. Forests face further fragmentation. Water systems face potential contamination. Local residents bear the consequences first.
The political and ecological risks converge on a single consequence. Indonesia damages its own integrity while damaging its own environment.
The political and ecological risks converge on a single consequence. Indonesia damages its own integrity while damaging its own environment.
This is not a trade off between foreign policy and development. It is a double loss. Indonesia undermines the moral consistency of its Palestine position while exposing a fragile island to additional ecological strain.
Integrity and environmental protection are both strategic assets. Erode them, and the damage extends beyond one project. The government should withdraw the concession and realign its economic decisions with its stated principles. Protecting Halmahera protects Indonesia’s credibility and its environment at the same time.
The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Monitor.