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Indonesia halts operations of 3 companies over flood risk in Sumatra

Source
Tempo - December 8, 2025

Oyuk Ivani Siagian, Jakarta – Indonesia's Minister of Environment and Forestry, Hanif Faisol Nurofiq, has inspected corporate operations in the Batang Toru and Garoga Buntu watersheds to determine whether business activities have contributed to the surge in floods and landslides across North Sumatra.

On Saturday, December 6, 2025, Hanif visited several companies including PT Agincourt Resources, PT Perkebunan Nusantara III (PTPN III), and PT North Sumatera Hydro Energy (NSHE), the developer of the Batang Toru Hydropower Plant.

Hanif said the initial field assessment revealed early signs of land clearing and industrial practices that may heighten disaster risks in the region.

"As a precaution, the Ministry has temporarily halted certain activities at locations deemed vulnerable," he told Tempo.

Eight companies under evaluation

The Ministry is currently investigating eight companies operating across four watersheds: Batang Toru, Garoga, Pandan, and Aek Sibulan. The names of the firms have not yet been released.

The investigation involves on-site assessments, document verification, and clarifications from company representatives regarding slope management, land clearing methods, and compliance with environmental monitoring obligations.

Clarification meetings with the companies are scheduled for this week. Findings will be reviewed by land, hydrology, and geospatial experts to ensure the conclusions are scientifically grounded.

"Our focus is to determine whether corporate activities are affecting land stability and increasing the risk of landslides or flooding," Hanif said.

If violations are confirmed, sanctions may range from administrative penalties to civil and criminal action under Law No. 32/2009 on Environmental Protection and Management.

Corporate responses: No speculation, wait for the official results

PT Agincourt Resources (PTAR) said it respects the Ministry's review process, which it described as routine verification of company data and environmental compliance.

"We urge all parties not to speculate before official results are issued," Agincourt's Corporate Secretary, Katarina Siburian Hardono, said on Sunday, December 7.

Katarina added that the company has suspended operations as requested and is focusing resources on disaster response efforts.

She reiterated Agincourt's earlier statement rejecting claims that its mining activities contributed to the flash floods, noting that its operations are located in the Aek Pahu watershed, separate from the Aek Ngadol and Garoga river systems where the disaster occurred.

According to Katarina, internal monitoring has not detected logs or wood debris within the Aek Pahu watershed resembling the materials that reportedly blocked river flow during the flood.

"The critical accumulation of wood debris at two Garoga bridges occurred on November 25 around 10:00, suddenly altering the river's course," she said.

Authorities continue to audit environmental impacts in all affected basins as North Sumatra works to recover from one of its most severe hydrological disasters in recent years.

– Nandito Putra contributed to the writing of this article.

Source: https://en.tempo.co/read/2071859/indonesia-halts-operations-of-3-companies-over-flood-risk-in-sumatr

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