After Sumatra Disaster Audit, Prabowo Strips 28 Companies of Operating Licenses

Palm Oil Magazine
President Prabowo Subianto orders the revocation of 28 company permits following a national forest governance audit linked to environmental violations and disaster risks in Sumatra. Photo by: Special

PALMOILMAGAZINE, JAKARTA – President of Indonesia Prabowo Subianto has revoked the business permits of 28 companies found to have violated land-use and environmental regulations, marking one of the firmest enforcement actions yet under his administration in the natural resources sector.

The decision was conveyed by the Forest Area Enforcement Task Force (Satgas PKH), which said the move followed a high-level limited meeting chaired by President Prabowo from London, United Kingdom, on January 19, 2026. The virtual meeting brought together key ministries, state institutions, and members of the task force.

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According to Satgas PKH, the revocation was triggered by the results of a comprehensive audit into a series of hydrometeorological disasters that struck parts of North Sumatra, Aceh, and West Sumatra. The government concluded that weaknesses in forest and land governance had significantly contributed to environmental degradation and disaster risks.

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Head of the Legal Information Center of the Attorney General’s Office, Anang Supriatna, said the government would remain consistent and uncompromising in enforcing the law across all natural resource–based industries.

“All of these firm actions are taken solely to safeguard national interests and to realize the greatest possible prosperity for the Indonesian people,” Anang said in an official statement on Wednesday (January 21, 2026).

Permits of 28 Companies Revoked

Based on the task force’s in-depth investigation, President Prabowo ordered the revocation of licenses from 22 companies holding Forest Utilization Business Permits (PBPH) for natural forests and plantation forests. The total area affected by these revocations reached 1,010,592 hectares.

In addition, permits were withdrawn from six other companies operating in mining, plantation, and timber forest product utilization (PBPHHK) sectors.

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The government said the move sends a strong signal that under President Prabowo’s leadership, Indonesia is intensifying efforts to reorganize and discipline natural resource–based economic activities, while reinforcing its commitment to environmental protection, particularly in forest and conservation areas.

Satgas PKH Claims Recovery of 4.09 Million Hectares

President Prabowo established Satgas PKH through Presidential Regulation No. 5/2025, granting it authority to conduct audits and intensive enforcement operations across forestry, plantation, and mining sectors.

Within its first year, the task force reported that it had reclaimed and brought back under state control 4.09 million hectares of oil palm plantations located inside designated forest areas.

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Of that total, approximately 900,000 hectares have been designated for restoration into conservation forests, aimed at strengthening environmental protection and safeguarding global biodiversity.

One of the flagship restoration priorities is the recovery of Tesso Nilo National Park, covering 81,793 hectares, which the government considers a strategic ecosystem in urgent need of rehabilitation.

The government emphasized that these measures are part of a broader agenda to restore forest governance, reduce environmental risks, and ensure that economic activities based on natural resources operate strictly within the law. (P2)

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