Indonesia Revokes 20 Firm Permits Over Flood-Linked Deforestation

Generated by AI AgentMarion LedgerReviewed byAInvest News Editorial Team
Friday, Dec 5, 2025 3:50 am ET2min read
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- Indonesia revokes 20 firms' permits over deforestation linked to deadly floods in northern Sumatra, citing illegal logging as a key disaster factor.

- Forestry and environment ministers announced investigations into 12 companies, with criminal charges possible for firms violating environmental regulations.

- Government faces public pressure to hold corporations accountable after social media outrage over images of flood-washed logs and 800+ fatalities.

- Environmental groups highlight 54,000 hectares of forest converted to mining zones, urging stricter enforcement of environmental laws.

- Officials balance corporate accountability with economic concerns, delaying coal plant closures despite climate pledges amid disaster aftermath.

Indonesia is taking legal action against companies suspected of exacerbating the recent deadly floods and landslides in northern Sumatra. The government has identified 12 firms for investigation, with forestry officials citing mismanagement of forests as a contributing factor to the disaster

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Forestry Minister Raja Juli Antoni announced the move during a parliamentary session, stating that forest-concession permits held by 20 companies would be revoked, pending presidential approval . The floods, triggered by a cyclone, have claimed over 800 lives and left hundreds missing .

Environmental authorities are also revoking permits for companies found responsible for illegal logging and land clearing. Satellite imagery and field inspections revealed large-scale deforestation in the affected areas

. Environment Minister Hanif Faisol Nurofiq confirmed that eight companies would face questioning starting December 8, with potential escalation to criminal prosecution . He emphasized that deforestation had made the region more vulnerable to heavy rains .

Energy Minister Bahlil Lahadalia pledged to revoke mining permits if companies were found to have violated regulations. "If in our evaluations they have proven to have violated or are not adherent, then we will do our job without any hesitation," he stated during a visit to West Sumatra

. The disaster has sparked public outrage, especially after images of logs washed ashore by floods circulated on social media . The government faces increasing pressure to hold corporations accountable for their environmental impact .

Government Action and Legal Repercussions

The Indonesian government is taking a firm stance on corporate responsibility in the wake of the floods. The Ministry of Forestry and Environment is working closely with the national police to trace the source of illegally felled logs

. Minister Antoni emphasized that legal action would be pursued if criminal violations were found . The move reflects growing public and political pressure to address the environmental damage linked to corporate activities .

In addition to revoking permits, the government is considering a moratorium on new forest concessions. Antoni stated that forest governance would be reviewed, and violations would be met with strict measures

. This decision follows a broader assessment of policies that may have contributed to the disaster . The government is also examining the role of deforestation in intensifying the impact of the cyclone .

The Role of Environmental Groups and Public Reaction

Environmental groups have been vocal in their criticism of corporate and government practices. JATAM, an environment-focused organization, pointed out that 54,000 hectares of forest have been converted into extraction zones for mining

. Green groups argue that deforestation has made the region more susceptible to landslides and flooding . Social media users have expressed outrage over images of logs washing ashore, calling for stricter enforcement of environmental laws .

The public backlash has not only targeted companies but also government officials. Coordinating Minister for Community Empowerment Muhaimin Iskandar called on three key ministers to "repent" for their roles in the crisis

. His comments, though later retracted, highlighted growing internal dissent within the administration . The minister emphasized the need for a "total evaluation of all policies" to prevent future disasters .

Broader Implications and Economic Considerations

The government's response to the floods has broader implications for Indonesia's environmental and economic policies. While officials are taking a harder line against corporate violations, they also face the challenge of balancing economic development with environmental protection. Indonesia has pledged to reduce emissions by 2035, but critics argue that reliance on Clean Coal Technology delays the transition to renewable energy

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The government has also postponed the early retirement of the Cirebon-1 coal power plant due to economic concerns. Minister Airlangga Hartarto cited the plant's remaining operational life and the high costs of replacing its energy output as reasons for the decision

. This move highlights the difficulty of phasing out coal in a country where it remains a major export and energy source .

The recent floods have underscored the urgent need for stronger environmental regulations and corporate accountability. As Indonesia grapples with the aftermath of the disaster, the government's actions may set a precedent for how it handles similar crises in the future.

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Marion Ledger

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