December 11, 2025 | 05:36 pm
TEMPO.CO, Jakarta - Greenpeace Indonesia is urging the government to revoke the permits of companies suspected of damaging Sumatra's forests and river basins, which worsened the severe flooding that hit three provinces in late November 2025. These permits must be revoked with measurable ecological restoration obligations.
"Companies should not only stop their activities without conducting restoration," said Kiki Taufik, Global Head of Forest Campaign at Greenpeace, when contacted on Wednesday, December 10, 2025.
Greenpeace's latest analysis shows that natural forests in Sumatra now cover only 10 to 14 million hectares, accounting for approximately 24.4 percent of the island's total area. This situation further degrades ecological functions.
According to him, many river basins are in critical condition because their forest cover is below 25 percent. "In such a situation, even the smallest extreme rain can turn into a major flood," he said.
Kiki also questioned the assumption that revoking permits for extraction companies would harm the local economy. In many cases, mining and plantation industries do not significantly benefit residents because they are capital-intensive and have minimal employment absorption.
According to Kiki, large-scale land control by companies also undermines residents' land-based economy. On the other hand, revoking permits can open up opportunities for alternative, fairer economic models such as social forestry, agroforestry, customary forests, and local community businesses.
He added that restricting extraction companies' activities can reduce the risk of flooding. Flooding is much more costly than the industry's economic value. "When calculated comprehensively, the economic benefits of the company are actually negative," he said.
Kiki cited the condition in the Batang Toru River Basin, North Sumatra, which lost about 70,000 hectares of forest during 1990-2022, or 21 percent of the total basin area. In addition, about 94,000 hectares are burdened with permits for various extraction industries. Ecological losses such as the loss of forest function, peat degradation, declining biodiversity, and increasing carbon emissions are never taken into account in the region's revenue calculations.
Based on this, Kiki believes it is reasonable for communities around mining and plantation areas to remain in poverty. The reason is that capital-intensive industries only provide minimal employment, while deforestation for mining and plantation expansion squeezes the local economy due to the loss of resource access.
Previously, the Ministry of Environment and Forestry announced that it had temporarily suspended the operations of companies in the Batang Toru and Garoga River basins in South Tapanuli Regency. "Starting on December 6, 2025, all companies in the upstream Batang Toru area must cease operations and undergo environmental audits," said Minister of Environment and Forestry Hanif Faisol Nurofiq in a written statement on Friday, December 5, 2025.
Hanif stated that three companies operating in the Batang Toru River Basin, namely PT Agincourt Resources, PTPN III, and PT North Sumatera Hydro Energy (NSHE), had been summoned for official inspections on December 8 in Jakarta.
He mentioned that the Batang Toru and Garoga areas are strategic ecosystems with important ecological functions. Therefore, every industrial activity must adhere to strict environmental protection standards.
Hanif stated that environmental audits will form the basis of a thorough evaluation of business operations, particularly in light of the intense rainfall in Batang Toru, which exceeds 300 millimeters per day. He opened up the possibility of criminal proceedings if violations that exacerbate disasters are found.
"Environmental restoration must be done in a landscape approach. We will calculate the damage and assess suspected legal violations," he said.
He will also strengthen the verification process for environmental approvals, business permits, and spatial suitability for all activities on steep slopes, in river channels, and in upstream river basins. "We will not hesitate to take firm action against any violations. Protecting the community from preventable disasters is a priority," said Hanif.
Read: New Report Warns of Rising Deforestation Risks in Indonesia's Pulp Supply Chain
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