Govt allows companies with revoked licenses to continue operating temporarily

The government has allowed a number of companies in Sumatra whose business licenses have been revoked to continue operating temporarily, as long as their activities do not disrupt economic stability or local employment.

Minister of State Secretary Prasetyo Hadi said the policy reflects President Prabowo Subianto’s directive that law enforcement actions should not immediately harm communities that depend on the affected companies for their livelihoods.

 “From the revocation process carried out yesterday, there will of course be technical follow-up by the relevant ministries. However, the fact that some companies may still be operating is not an issue,” Prasetyo said at the Presidential Palace Complex in Jakarta on Thursday (Jan. 22, 2026), as quoted by Sinarharapan.co.

He explained that the President had instructed that enforcement measures related to business license revocations must ensure economic activities continue, so as not to disrupt employment for local communities.

 “Under the President’s direction, these law enforcement processes must ensure that economic activities are not disrupted, which would otherwise affect job opportunities for the public,” Prasetyo said.

The government recently revoked the licenses of 28 companies found to have violated regulations governing the use of forest areas in Aceh, North Sumatra, and West Sumatra. Among the companies whose licenses have been revoked is gold miner PT Agincourt Resources, which operates in North Sumatra.

The decision followed a virtual meeting chaired by President Prabowo from London on Monday (Jan. 19, 2026), involving several ministers and the Forest Area Control Task Force (Satgas PKH).

According to Prasetyo, the 28 companies comprise 22 Forest Utilization Business Permit (PBPH) holders for natural and plantation forests covering a total area of 1,010,592 hectares, as well as six companies operating in the mining, plantation, and timber forest product utilization (PBPHHK) sectors.

He said the revocations were prompted by floods and landslides in several parts of Sumatra, which the government has linked to environmental degradation and improper forest management.

Read also : Indonesian government revokes four nickel mining permits in Raja Ampat

Before implementing the license revocations, President Prabowo instructed the Danantara Investment Management Agency to form a special task force to evaluate the economic impact of the decision. The team was tasked with preparing measures to ensure that economic activities at the affected companies do not come to an abrupt halt.

The Danantara-led team was also asked to assess options for transferring or restructuring business activities, particularly in sectors considered environmentally sensitive.

 “For example, companies operating under forest concession rights (HPH). We want to reduce the level of deforestation,” Prasetyo said. “At the same time, we must pay attention to communities that have depended on these companies for employment and ensure their jobs can be shifted to other sectors.”

Prasetyo stressed that the government does not want the license revocations to create new social problems, such as sudden job losses. Protection for workers, he said, remains a key consideration as the policy is implemented.

He added that the revocation process will not end with administrative decisions alone, as further technical steps will be handled by the relevant ministries and agencies in accordance with their respective authorities.

The move is part of President Prabowo’s broader agenda to tighten governance of natural resource–based economic activities, particularly in forest areas. As part of this effort, the President has issued Presidential Regulation No. 5/2025 on the establishment of the Forest Area Control Task Force.

Over the past year, Satgas PKH has reclaimed 4.09 million hectares of oil palm plantations located within forest areas, with around 900,000 hectares designated for restoration as conservation forests, including 81,793 hectares within Tesso Nilo National Park in Riau.

Following recent hydrometeorological disasters in Aceh, North Sumatra, and West Sumatra, the task force accelerated audits in the affected regions, which ultimately led to the revocation of the 28 companies’ licenses.

Editing by Reiner Simanjuntak