President Prabowo Subianto is reviewing cases related to the planned revocation of business permits held by 28 companies operating in Sumatra. The move comes amid concerns about potential legal challenges and impacts on investor confidence, according to his special envoy.
Permit Revocations Under Review
The review follows a January decision to proceed with the revocations, based on findings from the Forest Area Enforcement Task Force – known as Satgas PKH – regarding alleged violations of forest governance rules. While a decision to proceed was made in January, the permits have not yet been formally cancelled and will require further administrative action by relevant ministries before being revoked.
Presidential Special Envoy for Climate and Energy Hashim Djojohadikusumo stated that President Subianto aims to ensure the process is both fair and legally sound. “He does not want injustice to occur,” Djojohadikusumo said at the Indonesia Economic Summit 2026 on Wednesday, as reported by Katadata. “There are cases that fall into grey areas, where it is unclear whether the company truly violated the rules.”
The planned revocations include 22 forest concession holders and six companies in the mining and energy sectors. Specifically mentioned are gold miner PT Agincourt Resources and hydropower developer PT North Sumatra Hydro Energy, both located in North Sumatra.
International Support and Investor Concerns
The initial decision to move forward with the revocations occurred while President Subianto was attending meetings in London, where the move reportedly received broad international support. However, the current review indicates a sensitivity to potential legal disputes and the concerns of investors.
State Secretary Prasetyo Hadi has explained that the proposed revocations stem from findings that companies operated outside designated boundaries, encroached upon protected forest areas, and failed to fulfill administrative and financial obligations, including the payment of taxes.
The government’s actions are part of a larger effort to strengthen oversight of natural resource industries. This push follows deadly floods and landslides in Sumatra last year, which resulted in over 1,000 fatalities. Authorities have linked these disasters to environmental degradation caused by land clearing for mining and plantation activities.
Finance Minister Purbaya Yudhi Sadewa has stated that affected investors will have the opportunity to challenge the revocation decisions once formal notices are issued, emphasizing that the policy aims to improve governance, not discourage investment.
Frequently Asked Questions
What prompted the review of these permit revocations?
The review was initiated due to concerns about potential legal risks and the impact on investor confidence, as communicated by President Prabowo Subianto’s special envoy.
Which sectors are affected by the planned revocations?
The planned revocations cover companies in the forest concession, mining, and energy sectors.
What has been the government’s stated goal with these revocations?
The government has stated that the policy is intended to strengthen governance of natural resources and address environmental degradation, rather than to deter investment.
How will the balance between environmental protection and economic development be navigated in Sumatra going forward?
