Concession Permit Revoked, Toba Pulp Lestari (INRU) Announces Mass Layoffs

Jakarta, CNBC Indonesia - The pulp producer listed company, PT Toba Pulp Lestari Tbk (INRU), has announced major efficiency measures through the termination of employment relations (PHK) with its employees. This policy follows changes in the status of the company’s land concession permit.

Quoting the information disclosure on the Indonesia Stock Exchange (BEI), INRU’s management stated that it has socialised the employment termination policy on 23 to 24 April 2026. This measure is planned to take effect on 12 May 2026.

Management explained that this bitter decision is a direct impact of the revocation of the company’s Forest Utilisation Business Licence (PBPH). This has resulted in the complete cessation of all forest utilisation activities within the company’s PBPH area.

“The operational activities of employment termination are carried out as a result of the revocation of the Company’s PBPH, which impacts the cessation of forest utilisation activities,” management wrote in the document, quoted on Sunday (26/4/2026).

Regarding legal impacts, the company acknowledges the potential risk of emerging industrial relation disputes. Claims from affected employees due to this efficiency measure are one of the things anticipated by Toba Pulp Lestari’s management.

Nevertheless, the listed company with the stock code INRU emphasises that the PHK policy does not affect the company’s current financial condition. The company also states there is no impact on business continuity overall.

For information, PT Toba Pulp Lestari Tbk is a company operating in the pulp industry with its main operational location in North Sumatra. As of the publication of this news, the exact number of employees affected by the efficiency policy has not been detailed.