Jakarta. Sovereign wealth fund Danantara will manage land reclaimed from 28 companies whose permits were revoked over deforestation in Sumatra, which authorities say worsened flooding disasters that killed more than 1,000 people.

The floods and landslides that struck Aceh, West Sumatra and North Sumatra last November have claimed at least 1,100 lives and caused widespread destruction of infrastructure, homes, and public facilities, according to government data. Thousands of residents were forced to flee to temporary shelters, while many schools were closed for weeks after suffering structural damage. The government has blamed environmental degradation — including illegal forest clearing and encroachment — as a major factor behind the scale and severity of the disasters.

Following investigations into alleged forestry violations, Indonesia has revoked the business permits of 28 companies operating across the three provinces and reclaimed the land they previously controlled. Officials said the next phase will focus on managing the assets while minimizing economic and social fallout.

“The management of land belonging to the 28 legal entities whose permits were revoked will be coordinated by the Investment Ministry and Danantara,” the Forest Area Enforcement Task Force spokesman Barita Simanjuntak told reporters in Jakarta on Tuesday.

Barita said the coordination is intended to ensure that the permit revocations do not trigger economic disruption, stressing that the government is pursuing solutions that are “measured, effective, and efficient.”

The companies, spread across Aceh, North Sumatra and West Sumatra, were found to have committed administrative violations and, in some cases, potential criminal offenses related to forestry regulations following joint investigations by the Forestry Ministry and the task force.

Of the 28 companies, 22 had their permits revoked by the Forestry Ministry, two by the Energy and Mineral Resources Ministry, three by the Agriculture Ministry, and one by the Aceh provincial government. The revoked permits cover a range of activities, including forestry, mining, plantations, and hydropower projects. Among them are Astra Group's gold mining operation in North Sumatra and the Batang Toru hydropower project, which has a capacity of about 510 megawatts. The permit revocations followed a high-level coordination meeting on Monday attended by the state secretary, the attorney general, the head of the state auditor, and representatives from more than a dozen ministries and agencies.

Barita said the task force will also inventory potential unlawful acts committed by the companies and coordinate with law enforcement agencies within the task force to pursue further legal action if warranted.

President Prabowo Subianto ordered the revocations last week as part of the government’s response to environmental degradation and disaster risks in Sumatra. State Secretary Prasetyo Hadi said the decision was taken after a comprehensive review.

Energy Minister Bahlil Lahadalia said the move was not rushed and resulted from a thorough evaluation under Satgas PKH, with environmental impacts and regulatory compliance as key considerations.

Officials signaled that enforcement efforts may widen. “This is not limited to 28 companies,” Barita said. “More could follow as investigations continue.”

The government said technical follow-up measures, including transitional arrangements for affected operations and workers, will be handled by relevant ministries as part of broader reforms aimed at strengthening forest governance and disaster mitigation.