Indonesia will authorize
state-owned enterprises to take over the concessions of
28 violating companies in the Aceh and Sumatra regions. These companies had their licenses revoked for
violating forest utilization regulations and causing hydrometeorological disasters.
The entities involved are divided into two categories: a total of
22 natural and plantation forest utilization enterprises (covering
1,010,592 hectares) and
6 mining, plantation, and other enterprises. After the land and assets of the relevant enterprises are nationalized, state-owned enterprises will
operate them by sector. The coordination will be carried out by the
Investment Ministry jointly with Danantara, involving
Agrinas Palma Nusantara, the State Forestry Service, and the mining holding company
MIND ID among other state-owned entities.
The Forest Remediation Task Force stated that the
administrative process for revoking the licenses of the involved enterprises
is still ongoing, and will be
executed separately by the ministries of forestry, energy and mineral resources, agriculture, and the Aceh provincial government. After the concessions are taken over, operating rights will be strictly allocated by sector:
- The plantation sector will be operated by Agrinas;
- The mining sector will be coordinated by MIND ID, with specific commodities like tin and nickel managed by corresponding state-owned enterprises.
The State Secretariat added that the land of
22 forestry enterprises will be managed uniformly by the
State Forestry Service, while mining permits will be transferred to
MIND ID or its subsidiary
Antam. The core objective of this move is to
ensure business continuity and avoid employee layoffs, while balancing
legal enforcement with economic development, further increasing state revenue.
Among the 28 violating companies, the list includes the gold mining permit of
Angkort Resources Company, which operates the
South Tapanuli Martabe Gold Mine, a subsidiary of
United Tractors, currently employing
over 3,000 local workers.
Antam stated that if granted formal government authorization, it will take over the relevant mining permits,
strengthen sovereignty over natural resources management, promote local community empowerment, and closely coordinate with all parties to ensure the entire takeover process is
compliant and transparent.
In response, United Tractors said that Angkort
has not yet received an official revocation notice, and the company is continuously monitoring the situation. At this stage, it is unable to assess the impact on operations, finances, or legal aspects, and has requested Angkort to closely follow developments and take appropriate measures in accordance with the law.
This remediation covers
Aceh, West Sumatra, and North Sumatra: the majority of forestry enterprises are located in North Sumatra; there are 6 non-forestry enterprises, namely
2 in Aceh, 2 in North Sumatra, and 2 in West Sumatra, covering plantation, mining, hydropower, and other sectors.
