Mineral downstreaming is a strategic policy of Indonesia to increase the added value of natural resources, one of which is through the development of the bauxite processing industry into alumina. PT Bintan Alumina Indonesia (PT BAI), which operates in the Galang Batang Special Economic Zone, Bintan Regency, is a national strategic project that contributes to economic growth and job creation. However, this industrial activity also raises various environmental, legal, and ethical issues, particularly regarding its impact on coastal ecosystems and surrounding communities. This study aims to analyze the legal and environmental ethical dilemmas in PT BAI's operations by examining compliance with environmental regulations and the application of the principles of environmental responsibility and justice. This study uses a qualitative method with a case study approach and is normative in nature through the analysis of secondary data in the form of laws and regulations, scientific literature, company documents, media reports, and publications from non-governmental organizations. The results of the study show that there is tension between industrial development interests and environmental protection obligations. Although industrial activities have obtained permits, the various environmental impacts felt by the community indicate weak supervision and enforcement of environmental laws. From an environmental ethics perspective, this condition reflects ecological injustice that has the potential to harm coastal communities and future generations.