Indonesia revokes permits after deadly Sumatra floods
Indonesia has revoked permits for 28 companies, including a China-backed hydropower project and a major gold mining operation, in a sweeping environmental crackdown following devastating floods in Sumatra.
The decision comes after cyclone-triggered floods and landslides in late November killed around 1,200 people, displaced more than a million residents, and destroyed thousands of homes. Environmental experts say large-scale deforestation for mining and plantations worsened the disaster’s impact, News.Az reports, citing Reuters.
President Prabowo Subianto ordered the permit revocations for firms operating in forestry, oil palm, cocoa, mining, and power generation. Among those affected are PT North Sumatra Hydro Energy (NHSE), which runs the Batangtoru hydropower plant backed by China’s SDIC Power Holdings, and PT Agincourt Resources, operator of the Martabe gold and silver mine under Indonesia’s Astra International.
The Batangtoru project, under construction by PowerChina and designed to produce 510 megawatts of electricity, has long faced criticism from environmental groups over its impact on Sumatra’s biodiverse forests. It was previously expected to become fully operational by the end of this year.
Several companies said they were seeking clarification from the government, while environmental group WALHI urged authorities to ensure degraded forests are restored and that revoked assets are not simply transferred to new owners.
Deforestation data highlights the scale of the issue: Sumatra lost about 4.4 million hectares of forest between 2001 and 2024 — an area larger than Switzerland. Striking images of logs swept downstream during last year’s floods sparked nationwide outrage and intensified calls for stricter environmental enforcement.
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