Indonesia Suspends Operations of Three Companies Near Batang Toru Watershed

Environmental Concerns Prompt Immediate Action

The Indonesian Ministry of Environment and Forestry (KLH/BPLH) has taken decisive action by temporarily halting the operations of three major companies operating near the Batang Toru and Garoga watersheds in North Sumatra. The affected entities are:

1. PT Agincourt Resources
2. PT Perkebunan Nusantara III (PTPN III)
3. PT North Sumatera Hydro Energy (NSHE) - developer of the Batang Toru Hydroelectric Power Plant

Investigation Findings and Rationale

The decision follows a comprehensive investigation led by Minister Hanif Faisol Nurofiq, who conducted both aerial and ground inspections in the upper reaches of the Batang Toru and Garoga watersheds. The ministry's findings suggest that the companies' activities potentially exacerbated the recent flooding in North Sumatra. As a result, the ministry has mandated an immediate environmental audit of all three companies.

Implementation and Next Steps

The temporary operational halt became effective on December 6, 2025, with the companies required to undergo a comprehensive environmental audit. An official examination has been scheduled for December 8, 2025, in Jakarta, where the companies will be summoned to provide further clarification. Minister Hanif emphasized that the Batang Toru and Garoga watersheds are ecologically and socially critical areas that must be protected. The ministry's actions underscore Indonesia's commitment to balancing economic development with environmental stewardship.