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Indonesia Revokes Permits of 28 Companies after Sumatra Disasters

Alfida Rizky Febrianna
January 20, 2026 | 11:47 pm
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A man sits on a pile of logs washed away by a flash flood into Aek Garoga Village, South Tapanuli Regency, North Sumatra, on Saturday, November 29, 2025. (Antara Photo/Yudi Manar)
A man sits on a pile of logs washed away by a flash flood into Aek Garoga Village, South Tapanuli Regency, North Sumatra, on Saturday, November 29, 2025. (Antara Photo/Yudi Manar)

Jakarta. President Prabowo Subianto has ordered the revocation of business licenses held by 28 forestry, mining, and plantation companies found to have violated regulations and caused environmental damage, a senior aide said on Tuesday.

The move is part of the government’s response to devastating floods and landslides that struck three provinces on the island of Sumatra between November and December, with impacts continuing to be felt today.

“Mr. President has decided to revoke the licenses of 28 companies that were proven to have committed violations,” State Secretary Minister Prasetyo Hadi said at the Presidential Palace in Jakarta.

According to Prasetyo, the companies include 22 forestry permit holders operating across approximately 1 million hectares of forest land, as well as six firms engaged in mining and plantation activities.

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He said the decision was conveyed during a limited cabinet meeting held online on Monday, involving several ministries and agencies as well as the Forest Area Enforcement Task Force. Prabowo chaired the meeting via teleconference from London.

During the meeting, the task force presented the results of investigations into companies suspected of regulatory violations.

“Based on the findings reported by the task force, the president decided to revoke the licenses of 28 companies that were proven to have breached regulations,” Prasetyo said.

The Forest Area Enforcement Task Force is led by Defense Minister Sjafrie Sjamsoeddin, National Police Chief Listyo Sigit Prabowo, and Attorney General Sanitiar Burhanuddin.

The floods and landslides in Aceh, West Sumatra, and North Sumatra have killed at least 1,100 people and caused extensive damage to infrastructure, homes, and public facilities. Thousands of residents were forced to flee to temporary shelters, while many schools were closed for weeks due to building damage.

Power and telecommunications services were disrupted in numerous districts, and dozens of villages were either swept away by floods or buried by landslides, according to government data.

The government has blamed environmental degradation, including illegal forest clearing and encroachment, as one of the contributing factors behind the scale and severity of the disasters.

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