Prabowo reviews permit revocations in Sumatra amid investor concerns

President Prabowo Subianto is reviewing several cases linked to the government’s plan to revoke business permits held by 28 companies operating in Sumatra, amid concerns the process could raise legal and investor risks, his special envoy said.

The review follows a January decision to proceed with the revocations based on findings by the Forest Area Enforcement Task Force, or Satgas PKH, over alleged violations of forest governance rules. The permits have not yet been formally cancelled and will be revoked by relevant technical ministries after further administrative steps.

Presidential Special Envoy for Climate and Energy Hashim Djojohadikusumo said the president wanted to ensure the enforcement process remains fair and legally sound.

 “He does not want injustice to occur,” Hashim said at the Indonesia Economic Summit 2026 on Wednesday, as quoted by Katadata. “There are cases that fall into grey areas, where it is unclear whether the company truly violated the rules.”

Read also : Legal expert warns permit revocations risk court challenge without proper process

The planned revocations cover 22 forest concession holders — spanning about 1.01 million hectares — as well as six companies operating in the mining and energy sectors. Among them are gold miner PT Agincourt Resources and hydropower developer PT North Sumatra Hydro Energy in North Sumatra, according to previous government statements.

The decision was taken while Prabowo was attending meetings in London, where the move drew broad international support, Hashim said. Still, the review signals sensitivity within the administration to potential legal disputes and investor concerns stemming from the crackdown.

State Secretary Prasetyo Hadi has said the move followed findings that companies had operated outside permitted boundaries, encroached on protected forest areas, and failed to meet administrative and financial obligations, including unpaid taxes.

The planned revocations are part of a broader push by Prabowo’s government to tighten oversight of natural resource industries following deadly floods and landslides in Sumatra late last year that killed more than 1,000 people. Authorities have linked environmental degradation to land-clearing by mining and plantation companies.

Finance Minister Purbaya Yudhi Sadewa has said affected investors would be able to challenge the decisions once formal revocation notices are issued, underscoring that the policy is intended to strengthen governance rather than deter investment.

Editing by Reiner Simanjuntak