Indonesian authorities revoked permits for 28 resource companies on January 21 after linking their alleged forest violations to devastating floods that killed more than 1,000 people in Sumatra in December.
The revocations affect companies across mining, logging, pulpwood plantations, and hydropower operations covering more than one million hectares, according to a government presentation on Wednesday. Officials found the companies violated laws governing activities in forest areas, State Secretary Minister Prasetyo Hadi said.
Among those losing permits is PT Agincourt Resources, which operates the major Martabe gold mine in North Sumatra and belongs to the Astra International conglomerate. Pulp producer PT Toba Pulp Lestari, founded by billionaire Sukanto Tanoto, also faces permit rescission.
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Shares of PT Astra International, which owns Agincourt through subsidiary PT United Tractors, dropped as much as 13% following the announcement.
This is the latest phase in President Prabowo Subianto’s broader campaign against alleged misconduct in the natural resources sector. The government has already seized control of parts of nickel and coal mines, along with more than four million hectares of palm oil plantations now consolidated under state management.
Also read: Indonesia expands land seizures across mining assets
Officials plan to designate approximately 900,000 hectares of the seized land for restoration to conservation forest, including nearly 82,000 hectares within Tesso Nilo National Park in Riau province, Hadi said. The Environment Ministry recently filed lawsuits against six companies seeking more than $280 million in damages for alleged environmental harm in North Sumatra.
PT Toba Pulp Lestari said Wednesday it awaits official written notification from the government and continues essential operations, asset maintenance, and forest area security. Trading in the company’s shares has been suspended since December 17 following a government-ordered audit into its potential role in the floods.
An Agincourt spokesperson said the company had not received official notification regarding the decision and declined further comment.
Environmental group WALHI North Sumatra called for authorities to halt new permits in affected areas and impose strict sanctions, warning that renewed licensing would perpetuate environmental damage.
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