Executive Summary

Key insights and market outlook

Indonesian President Prabowo Subianto has ordered the Ministry of Forestry to crack down on non-compliant forestry permits, resulting in the cancellation of 22 permits covering 1.012 million hectares ²

³. The move follows recent natural disasters in Sumatra, Aceh, and North Sumatra where 116,198 hectares of affected areas were linked to problematic permits ². This action is part of a broader effort to improve forest governance and follows through on Prabowo's commitment to environmental accountability ¹.

Full Analysis

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Deep Dive Analysis

Indonesian Government Launches Major Forestry Permit Crackdown

Comprehensive Action Against Non-Compliant Permits

In a significant policy enforcement, Indonesian President Prabowo Subianto has directed the Ministry of Forestry to cancel 22 forestry permits totaling 1.012 million hectares ²

³. This decisive action follows recent severe natural disasters in Sumatra, particularly in Aceh, North Sumatra, and West Sumatra, where 116,198 hectares of the revoked permits were directly linked to the affected areas ².

Improving Forest Governance

The crackdown on non-compliant forestry permits is part of a broader initiative to enhance forest governance in Indonesia. Minister of Forestry, Raja Juli Antoni, confirmed that the decision was made during a meeting with President Prabowo at the Presidential Palace on December 15, 2025 ¹

. The government is taking a firm stance against companies violating forestry regulations, with President Prabowo emphasizing that non-compliant entities will face immediate permit revocation ⁴.

Cumulative Impact of Permit Revocations

The recent cancellation brings the total area of revoked permits since January 2025 to approximately 1.5 million hectares ²

. This includes:

First batch revocation on February 3, 2025: 18 permits covering 0.5 million hectares
Recent revocation on December 15, 2025: 22 permits covering 1.012 million hectares

Environmental and Economic Implications

The government's strict enforcement is expected to have significant implications for both environmental protection and the forestry industry. By holding companies accountable for their concessions, the administration aims to reduce environmental degradation and prevent future natural disasters. This move demonstrates Prabowo's commitment to environmental stewardship while potentially impacting companies operating in the forestry sector.

References