Aceh Governor Requests Temporary Closure of Palm Oil Company PT MSB II in Subulussalam
Banda Aceh – Aceh Governor Muzakir Manaf, known as Mualem, has officially requested the Ministry of Investment and Downstream Industries/Investment Coordinating Board (BKPM) to temporarily shut down the operations of PT Mandiri Sawit Bersama (MSB) II, which operates in the city of Subulussalam.
The request was conveyed through an urgent letter numbered 500.10/7816 on Tuesday (24/6/2025). According to the letter, the request is based on a number of field findings and supporting documents that the company has yet to fulfil.
One of the primary grounds for the request is a letter from the Mayor of Subulussalam, numbered 500.4.4.24/445/2025 and dated 23 May 2025, which informed that PT MSB II had not fulfilled several required licensing documents.
Verification by the Aceh Provincial Government team also found that PT MSB II is a foreign investment (PMA) company, meaning its oversight falls under the authority of the central government through BKPM. Beyond administrative issues, the team also identified suspected violations that were deemed to require further investigation. Minutes from the field verification team's findings were attached to the letter sent to the Ministry.
"In light of this matter, and considering that PMA authority rests with the Ministry of Investment/BKPM, we hope the Minister will consider a temporary closure whilst a supervision process is carried out on the company," the letter sent by Mualem stated.
In follow-up, the Aceh Provincial Government also plans to deploy an Integrated Team to the field to conduct further verification of the operations of the company, which operates in the palm oil plantation sector. This step also serves as a response to public complaints and official reports from the Subulussalam City Government.
The Aceh Provincial Government affirmed its commitment to ensuring that all investment activities in the Aceh region comply with legal provisions, whilst respecting community rights and preserving the environment.
PT MSB II is known to have operated in the Subulussalam area for several years. However, its activities have drawn scrutiny from various parties, including civil society and environmental NGOs, regarding alleged permit irregularities and the company's operational practices on the ground.
The request was conveyed through an urgent letter numbered 500.10/7816 on Tuesday (24/6/2025). According to the letter, the request is based on a number of field findings and supporting documents that the company has yet to fulfil.
One of the primary grounds for the request is a letter from the Mayor of Subulussalam, numbered 500.4.4.24/445/2025 and dated 23 May 2025, which informed that PT MSB II had not fulfilled several required licensing documents.
Verification by the Aceh Provincial Government team also found that PT MSB II is a foreign investment (PMA) company, meaning its oversight falls under the authority of the central government through BKPM. Beyond administrative issues, the team also identified suspected violations that were deemed to require further investigation. Minutes from the field verification team's findings were attached to the letter sent to the Ministry.
"In light of this matter, and considering that PMA authority rests with the Ministry of Investment/BKPM, we hope the Minister will consider a temporary closure whilst a supervision process is carried out on the company," the letter sent by Mualem stated.
In follow-up, the Aceh Provincial Government also plans to deploy an Integrated Team to the field to conduct further verification of the operations of the company, which operates in the palm oil plantation sector. This step also serves as a response to public complaints and official reports from the Subulussalam City Government.
The Aceh Provincial Government affirmed its commitment to ensuring that all investment activities in the Aceh region comply with legal provisions, whilst respecting community rights and preserving the environment.
PT MSB II is known to have operated in the Subulussalam area for several years. However, its activities have drawn scrutiny from various parties, including civil society and environmental NGOs, regarding alleged permit irregularities and the company's operational practices on the ground.