In Indonesia, environmental laws result in the loss of permits for a gold mine and a power plant owned by China.

The Indonesian government revoked permits for 28 companies, including a China-backed hydropower station and a gold mining unit operated by the conglomerate Astra International. This was in response to accusations that environmental violations had worsened floods last year.

In late November, cyclones caused floods and "landslides" on the island Sumatra. The flooding and "landslides" destroyed homes and forced over a half-million residents to flee their homes. Environmental experts say the destruction was exacerbated by deforestation rampantly carried out to make room for mines and plantations.

On Tuesday, President Prabowo Sugianto revoked permits for 28 companies involved in forestry and oil palm as well as mining and power generation.

PT North Sumatra Hydro Energy, PT Agincourt Resources, and PT Toba Pulp Lestari were among the companies.

HYDRO PLANT Accused of Ecological?Damage

According to Indonesia's national utility company, NSHE is owned by China's SDIC Power Holdings Co. Ltd.

Environmental activists have been calling for the project to be stopped due to the environmental destruction that it has caused on the island.

Before the floods the project was supposed to be fully operational at the end of the year. It will have a capacity total of 510 Megawatts.

SDIC Power did not immediately respond to an email requesting comment. NSHE stated that it was formulating answers to?questions. PowerChina couldn't be reached immediately for comment.

Huang He, China’s consulate general in North Sumatra told local media on Monday that the Batangtoru Plant was built according to Indonesian law. He also expressed his hope that the company’s activities can be resumed.

FIRMS SEEK CLARITY

Toba Pulp, a pulp manufacturer, said on Wednesday that it would seek clarifications from the government as it assessed the impact of the decision on its business.

In a filing to the stock exchange, it stated that "this government statement could impact the timber harvesting which is the primary raw materials for the company's product."

Astra International Agincourt operates the Martabe Gold and Silver Mine. The company declined to comment as they had not received an official notification from the government. They added that the company would respect the decision of the government while retaining its legal rights.

Agincourt had previously said that any attempt to link their operations with the November disaster was "premature".

The revocation was not immediately apparent what it would mean for future projects.

GOVERNMENT FINAL DECISION

Barita Smanjuntak is the spokesperson of Indonesia's military-backed task force that investigates these companies. She said the government's decision was "final" but that companies could discuss the future of their assets with other government agencies.

Barita added that the actions of some companies had been found to be 'outside their concessions', and that others had infringed on river banks which should have remained unaffected.

Director executive Boy Jerry Sembiring of the environmental group WALHI called on the government not to transfer the assets to others.

According to David Gaveau of Nusantara Atlas, a deforestation monitoring organization, Sumatra lost 11 million acres (4.4 million hectares) of forest between 2001 and 2024. This is an area larger than Switzerland.

The images of hundreds and hundreds of logs being washed downriver by floodwaters last year caused a stir amongst Indoensians across the archipelago. Reporting by Fransiska Nanangoy and Bernadette Cristina; Editing by Gibran Pishimam and David Stanway

(source: Reuters)