North Sumatra Faces the Largest Forest Concession Revocation After a Disaster

In January 2026, the Indonesian government revoked Business Permits for Forest Utilization (PBPH) for 22 companies in Sumatra disaster-affected areas that were proven to have committed violations.

"The violations vary, for example, conducting activities outside the granted permit area," said Minister of State Secretary (Mensesneg) Prasetyo Hadi, as reported by Katadata.co.id, Tuesday (20/1/2026).

"Then, conducting business activities in prohibited areas, such as protected forests. There are also violations in the form of unfulfilled obligations to the state, such as taxes," he added.

The total area of PBPH concessions whose permits were revoked reached 1.01 million hectares (ha), with the largest revocation of concessions occurring in North Sumatra.

According to the Mensesneg's report, the area of PBPH concessions revoked in North Sumatra was approximately 709.7 thousand hectares.

This figure is larger than the designated production forest within forest areas in North Sumatra, which, according to Ministry of Forestry data, covered 653.9 thousand hectares in 2024.

A different situation occurred in Aceh and West Sumatra, where the area of revoked PBPH concessions was smaller than the production forest within their respective forest areas.

Below are the details of the production forest within forest areas in North Sumatra, West Sumatra, and Aceh in 2024; and the area of PBPH concessions whose permits were revoked in January 2026:

North Sumatra

• Production forest area: 653,958 hectares
• Area of revoked PBPH concessions: 709,678 hectares
• Ratio of revoked concession area to total production forest: 109%

West Sumatra

• Production forest area: 470,364 hectares
• Area of revoked PBPH concessions: 191,038 hectares
• Ratio of revoked concession area to total production forest: 41%

Aceh

• Production forest area: 482,234 hectares
• Area of revoked PBPH concessions: 110,275 hectares
• Ratio of revoked concession area to total production forest: 23%