Civil Society Criticises Revocation of Licences for 28 Companies Following Sumatra Disaster
Jakarta — President Prabowo Subianto’s decision to revoke the licences of 28 companies in Aceh, North Sumatra, and West Sumatra following the Sumatra disaster has drawn criticism from the Civil Society Coalition Advocating for the Forestry Law. The coalition views this step as leaving several fundamental issues unresolved, particularly regarding transparency, governance, and the orientation towards environmental recovery.
In its press release, the Civil Society Coalition stated that law enforcement through licence revocation must prioritise access to information and public participation. To date, the government is deemed not to have fully disclosed the Ministerial Decrees on licence revocation or the bases for the violations committed by those companies. Additionally, the absence of open data such as concession maps makes it difficult for the public to monitor the process.
“Without clarity on the location and characteristics of the affected areas, the licence revocation risks proceeding only administratively without ensuring improvements in on-ground governance,” said the Civil Society Coalition in its statement on Friday (3/4/2025).
The coalition, comprising the Indonesian Center for Environmental Law, Working Group ICCAs Indonesia, MADANI Berkelanjutan, WALHI Nasional, Kaoem Telapak, Aliansi Masyarakat Adat Nusantara, FIAN Indonesia, HuMa Indonesia, Jaringan Pemantau Independen Kehutanan, Forest Watch Indonesia, Sawit Watch, Garda Animalia, Konsorsium Pembaruan Agraria, and Independent Forest Monitoring Fund, also highlighted the government’s policy of entrusting the management of former licensed lands to state-owned enterprises (BUMNs) such as PT Perhutani, MIND ID, and Agrinas.
According to them, this approach deviates from the primary objective of licence revocation as an administrative sanction aimed at recovery. “Licence revocation should ensure that business activities do not continue and is followed by efforts to restore forest ecosystem functions,” said the Civil Society Coalition.
The coalition believes that former concession lands should be returned to communities through schemes such as customary forests, social forestry, and agrarian reform, especially for vulnerable groups like indigenous peoples and farmers. This approach is seen as more aligned with efforts to enhance welfare and food sovereignty.
Furthermore, the coalition assesses that the licence revocation process demonstrates weaknesses in applying the principle of due process of law. The revocation was carried out without graduated administrative sanction stages and with minimal transparency regarding the steps taken by the government before the decision was made. After the revocation, the President has ordered a review to avoid potential errors in the decision.
The coalition views this situation as opening the door to legal challenges against the government, as has occurred in similar cases in Papua and West Papua. They also link this issue to the impacts of implementing the Omnibus Law on Job Creation, which allows for direct application of administrative sanctions without stages.