Task Force Probes 28 Firms After License Revocations

The Indonesian government has revoked permits held by 28 companies operating in Sumatra, citing environmental degradation linked to recent floods and landslides. the affected entities comprise 22 Forest Utilization business Permit (PBPH) holders and six companies operating in the mining, plantation, and timber forest product utilization sectors. Among them is North Sumatra-based gold miner PT Agincourt Resources.

Despite the revocations, the government has allowed some of the companies to continue operating temporarily, provided their activities do not disrupt economic stability or local employment. Habitat and Forestry Minister siti Nurbaya Bakar stated this policy reflects President Prabowo’s instruction that law enforcement actions should not promptly harm communities that depend on the companies for their livelihoods.

The license revocations followed a series of floods and landslides in several parts of Sumatra, which the government has linked to environmental degradation and improper forest management.

The move forms part of the President’s broader push to tighten governance of natural resource-based activities in forest areas,under Presidential Regulation No. 5/2023 on the establishment of the Forest Area Control Task Force (Satgas PKH).

Over the past year, Satgas PKH has reclaimed more then 4.9 million hectares of land, including oil palm plantations located within forest zones, with approximately 898,000 hectares earmarked for restoration as conservation forests. Recent hydrometeorological disasters in Sumatra prompted the task force to accelerate audits in the affected regions, culminating in the revocation of the 28 companies’ permits.

Editing by reiner Simanjuntak