A criminal investigation is underway into 28 companies following the revocation of their operating permits by President Prabowo Subianto. The permits were revoked due to alleged misuse of forest areas linked to ecological disasters in Sumatra, according to the Forest Area Enforcement Task Force (Satgas PKH).
Permit Revocations and Investigation
Satgas PKH spokesperson Barita Simanjuntak confirmed on Monday, January 26, 2026, that the North Sumatra High Prosecutor’s Office is handling the criminal probe. While details regarding the scope and progress of the investigation remain undisclosed, Simanjuntak stated that findings will be announced upon completion.
The permit revocations, Simanjuntak emphasized, were not abrupt but followed a “structured process.” He added that affected companies are now expected to prepare for the next steps as the administrative process of formally delivering the revocation decisions is underway.
The follow-up to the President’s announcement is being carried out by the ministries that originally issued the permits, including the Ministry of Energy and Mineral Resources and the Ministry of Forestry. Notifying all affected parties will take time, but the revocation decisions are final, Simanjuntak affirmed.
Balancing Enforcement with Economic Concerns
The government has allowed some of the affected companies to continue operating temporarily, a decision linked to President Prabowo’s directive to avoid disrupting economic stability and local employment. This policy aims to mitigate harm to communities dependent on these companies, as stated by Minister of State Secretary Prasetyo Hadi.
The license revocations followed a series of floods and landslides in Aceh, North Sumatra, and West Sumatra, which the government attributes to environmental degradation and improper forest management. This action is part of a broader effort to strengthen governance of natural resource activities in forest areas, as outlined in Presidential Regulation No. 5/2025.
Over the past year, Satgas PKH has reclaimed over 4 million hectares of oil palm plantations within forest zones, with approximately 900,000 hectares designated for restoration as conservation forests. The recent disasters in Sumatra prompted the task force to expedite audits, leading to the revocation of the 28 companies’ permits.
Frequently Asked Questions
What prompted the revocation of these permits?
The permits of 28 companies were revoked due to operational violations and contributions to environmental damage in Aceh, North Sumatra, and West Sumatra, as determined by President Prabowo Subianto.
Which sectors were affected by the permit revocations?
The affected entities include 22 Forest Utilization Business Permit (PBPH) holders, as well as companies operating in the mining, plantation, and timber forest product utilization sectors. PT Agincourt Resources, a North Sumatra-based gold miner, is among them.
Is any effort being made to mitigate the economic impact of these revocations?
Yes, the government has allowed some companies to continue operating temporarily, provided their activities do not disrupt economic stability or local employment, reflecting President Prabowo’s concern for communities dependent on these businesses.
How will the outcomes of this investigation impact future environmental regulations and enforcement in Indonesia?