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Eight firms called in as deforestation linked to Sumatra disaster

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Jakarta Globe - December 3, 2025

Ilham Oktafian, Syifa Aulia, Jakarta – The Environment Ministry will summon eight companies next week over allegations that their role in deforestation contributed to the massive floods and landslides that devastated large parts of Sumatra and left nearly 800 people dead, Environment Minister Hanif Faisol Nurofiq said on Wednesday.

Hanif told reporters at the parliamentary complex in Jakarta that formal letters had been sent to the companies demanding they appear for clarification. "We have issued the summons. On Monday, we expect them to come and explain everything," Hanif said.

Although several of the firms possess official permits, Hanif stressed that operating licenses do not shield companies from legal consequences if they are proven to have caused environmental degradation. "They may have permits, but if there is environmental damage, that falls under the authority of the environment minister," he said.

Authorities are accelerating recovery efforts across North Sumatra after catastrophic floods and landslides triggered by Cyclone Senyar in late November left more than 770 people dead, 463 missing, and displaced over 746,000 residents across North Sumatra, West Sumatra, and Aceh, according to the National Disaster Mitigation Agency (BNPB).

Large-scale forest conversion

According to Hanif, preliminary findings show that several companies converted large swaths of forest into dry agricultural land. Around 340,000 hectares of forest have reportedly been altered, including 50,000 hectares in upstream areas that are now bare, significantly reducing the land's ability to absorb rainwater.

This widespread deforestation, Hanif said, has made the region extremely vulnerable to flooding even during moderate rainfall. In Aceh alone, 9.7 billion cubic meters of rainwater fell over the past two days, a volume the degraded landscape could no longer contain.

Hanif also acknowledged the possibility of local government involvement in illegal logging and destructive land-use policies. The ministry, he added, will impose sanctions where scientific assessments show regional policies have worsened environmental conditions.

"We will not hesitate to sanction regional governments if their policies aggravate landscape degradation," he said. Possible penalties include restoring forest status to degraded land and imposing administrative fines.

The minister also highlighted the discovery of large piles of logs carried downstream during the floods in several Sumatran provinces. He strongly suspects the logs originated from forest clearing for palm oil plantations.

"When opening land for palm oil, trees are felled but not burned due to the zero-burning policy. They are stacked at the edges of the land. When major floods occur, the logs are washed away," he explained.

From the three worst-hit regions, North Sumatra appears to have contributed the most rogue logs, Hanif said. Deforestation in the mountainous Batang Toru area, known for its V-shaped landscape that channels water into populated areas – has been particularly severe.

The National Police (Polri) has opened an investigation into the log debris. Brigadier General Irhamni, the unit's director, confirmed the probe on Tuesday. "It is under investigation," he said.

Walhi points to seven companies in Batang Toru

Environmental watchdog Walhi North Sumatra said earlier that seven companies operating in or near the Batang Toru ecosystem bear responsibility for triggering the ecological disaster.

The companies named by Walhi include Agincourt Resources (Martabe gold mine), NSHE (Batang Toru hydropower), Pahae Julu Micro-Hydro Power, SOL Geothermal Indonesia, Toba Pulp Lestari, Sago Nauli Plantation, and state plantation company PTPN III Batang Toru Estate.

Walhi said industrial expansion has caused severe loss of forest cover, river sedimentation, erratic water flows, habitat fragmentation, and land conversion for eucalyptus and palm oil plantations;all of which heightened the risk of flash floods.

Agincourt resources responds

Agincourt Resources, which operates the Martabe gold mine, expressed condolences to victims of the disaster but rejected suggestions that its operations contributed to the flash floods in Garoga village.

"The Garoga flood occurred in the Garoga/Aek Ngadol watershed, which is different and not connected to the Aek Pahu watershed where we operate," said Corporate Communications Senior Manager Katarina Siburian Hardono. She added that the company's monitoring has found no displaced logs in the Aek Pahu watershed. "We fully support the government's comprehensive review of all contributing factors and stand ready to cooperate transparently," she said.

Source: https://jakartaglobe.id/news/eight-firms-called-in-as-deforestation-linked-to-sumatra-disaste

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