Forestry Ministry Audits 24 Permits Following Sumatra Disasters

Jakarta. The Forestry Ministry is auditing 24 forest utilization permits across Aceh, North Sumatra, and West Sumatra following deadly flash floods and landslides that struck the regions late last year, Deputy Forestry Minister Rohmat Marzuki said on Monday. Speaking during a working meeting with House of Representatives Commission IV in Jakarta, Rohmat said the audits target Business Licenses for Forest Utilization, or PBPH, held by companies operating in areas affected by severe flooding. “We are currently auditing 24 PBPH across the three flood-affected provinces of Aceh, North Sumatra and West Sumatra,” Rohmat told lawmakers. While the Forestry Ministry has not disclosed preliminary findings, Rohmat said the audit covers dozens of forest concessions located in watersheds hit by major floods. The review comes amid growing scrutiny over the role of deforestation, illegal logging, and extractive activities in worsening the impact of extreme weather events. Beyond the ongoing audits, the ministry has revoked 40 business licenses nationwide over the past several years, covering a total of about 1.5 million hectares. Rohmat added that the ministry, working with the Forest Area Control Task Force (Satgas PKH), is also seeking to reclaim forest land from illegal palm oil plantations and unlicensed mining operations to ensure legal certainty and long-term environmental sustainability for local communities and future generations. Environmental experts and activists have argued that the devastating floods and landslides were not caused solely by extreme weather. They point to years of deforestation and illegal logging in Sumatra’s forests, citing large, neatly cut logs that were swept downstream by floodwaters and piled up in residential areas and along major roads. The floods and landslides that hit multiple cities and regencies across the three provinces on Nov. 25 killed more than 1,000 people, left hundreds missing and damaged tens of thousands of homes, according to official data. Companies Urged to Adopt International Standards Jalal, chairman of the advisory board at Social Investment Indonesia (SII), said the government has introduced mining governance standards, but these fall short of stricter international benchmarks. “International standards set much higher criteria and serve as better references for responsible mining,” Jalal said. “Unfortunately, regulatory reform in Indonesia has not moved fast enough.” He said adopting international standards could incentivize mining companies whose buyers impose strict governance requirements or those seeking cheaper financing from banks and global investors. Lower capital costs, he added, could reward firms that adopt higher environmental and social practices. However, Jalal noted that not all companies face such pressure, as some buyers and creditors impose minimal governance requirements. This, he said, underscores the need for stronger state intervention through tougher regulations and the adoption of higher international standards. Indonesia’s mining sector currently uses various standards, including guidelines from the Mining and Metallurgy Society of Indonesia and ESG guidance issued by the Indonesian Chamber of Commerce and Industry in 2023. Many firms have also adopted ISO 14001 for environmental management systems and ISO 45001 for occupational health and safety. Other frameworks referenced include the Responsible Minerals Assurance Process, which focuses on ethical mineral production and human rights, as well as the Task Force on Climate-related Financial Disclosures and IFRS Sustainability Standards, which guide transparency on environmental risks and financial sustainability. Globally, one of the most demanding benchmarks is the Initiative for Responsible Mining Assurance, or IRMA, an independent auditing body widely regarded as having the world’s strictest mining standards, with more than 400 requirements covering environmental, social and governance issues. In Indonesia, IRMA implementation has begun within the nickel industry. Harita Nickel became the first company in the country to apply for IRMA certification, followed by Vale Indonesia. Harita’s audit extends beyond its mining activities to include its smelter and refinery facilities. While international standards such as IRMA are not yet mandatory, Jalal said the recent disasters in Sumatra could serve as a turning point. “Early 2026 could be a momentum for the public to push for stronger governance in the mining sector,” he said, arguing that tighter standards are needed to ensure extractive operations better protect the environment, communities and biodiversity. Tags: Keywords: