Indonesia has announced it will revoke permits held by 28 resource companies, including major gold miner PT Agincourt Resources, following investigations linking alleged forest mismanagement to deadly floods in Sumatra last December that killed over 1,000 people.
The affected permits, covering more than a million hectares, include activities such as logging, pulpwood plantations, mining, and hydropower, the government said. Authorities found the companies had violated forest area regulations, according to State Secretary Minister Prasetyo Hadi.
An area affected by a deadly flash flood following heavy rains in Aceh Tamiang regency, Aceh province, Indonesia, Dec 4, 2025.
Other notable firms impacted include pulp producer PT Toba Pulp Lestari, owned by billionaire Sukanto Tanoto. The government’s move is part of a broader crackdown on Indonesia’s natural resources sector under President Prabowo Subianto, which has seen state seizure of parts of nickel and coal mines, as well as over four million hectares of oil palm plantations.
Shares of PT Astra International, Agincourt’s parent through listed subsidiary PT United Tractors, fell 13% following the announcement. Trading in Toba Pulp Lestari has been suspended since Dec 17 while its operations are audited. Both companies are awaiting formal government decisions.
Of the land affected, roughly 900,000 hectares will be restored to conservation forest, including nearly 82,000 hectares in Tesso Nilo National Park in Riau province. The Environment Ministry has also filed lawsuits against six companies in North Sumatra, seeking more than US$280 million (RM1.14 billion) for environmental damage.
Environmental groups have urged the government to halt new permits in the revoked areas and impose strict sanctions, warning that reissuing licences could cause further ecological harm.
