Indonesia has taken a decisive step in strengthening forest governance. President Prabowo Subianto officially revoked the licenses of 28 companies operating in forestry, plantations, and mining across Sumatra. The move underscores the government’s commitment to reclaiming forest land and restoring conservation areas amid mounting environmental pressures.
Key Facts & Background
- Policy Action:
- On 20 January 2026, President Prabowo revoked the permits of 28 companies in Sumatra.
- Companies affected include PT Toba Pulp Lestari Tbk. (INRU) and APRIL Group affiliates PT Sumatera Riang Lestari and PT Sumatera Sylva Lestari.
- Legal Framework:
- Enforcement carried out by the Forest Area Control Task Force (Satgas PKH), established under Presidential Regulation No. 5/2025.
- Task force mandated to audit and regulate businesses exploiting natural resources in forestry, plantations, and mining.
- Land Reclamation:
- Within one year, Satgas PKH reclaimed 4.09 million hectares of forest land previously converted into palm oil plantations.
- Of this, 900,000 hectares restored as conservation forest to safeguard biodiversity.
- Notable recovery: 81,793 hectares in Tesso Nilo National Park, Riau.
- Company List Highlights:
- Revocations span Aceh, North Sumatra, and West Sumatra.
- Examples include PT Minas Pagai Lumber (78,000 ha), PT Gunung Raya Utama Timber (106,930 ha), and PT Teluk Nauli (83,143 ha).
- Six non-forestry businesses also lost permits, including PT Agincourt Resources (mining) and PT North Sumatra Hydro Energy (hydropower).
- Government Position:
- Minister of State Secretary Prasetyo Hadi emphasized continued enforcement against illegal land use.
- Restoration efforts aim to balance economic activity with environmental sustainability.
Strategic Insights
The revocation of licenses marks one of Indonesia’s most assertive actions in addressing deforestation and illegal land use. By reclaiming millions of hectares, the government is signaling that conservation and biodiversity protection are now central to national policy. The inclusion of major companies in the crackdown demonstrates a willingness to confront powerful industry players, reinforcing the credibility of forest governance reforms.
This decision also reflects broader global trends, where environmental sustainability is increasingly tied to economic legitimacy. For Indonesia, restoring forest land strengthens its climate commitments, enhances international reputation, and creates opportunities for sustainable development. The challenge ahead lies in ensuring that reclaimed areas are effectively rehabilitated and that enforcement remains consistent. If successful, this policy could reshape the balance between resource exploitation and conservation, setting a precedent for long-term ecological resilience in Southeast Asia.