Luhut Denies Involvement with Toba Pulp Lestari Amid Environmental Concerns

Background of the Controversy

Luhut Binsar Pandjaitan, Chairman of the National Economic Council (DEN), has strongly denied allegations linking him to PT Toba Pulp Lestari (TPL), a pulp company operating in Tapanuli, North Sumatra. The company has faced criticism for its alleged role in environmental degradation and exacerbating natural disasters in the region ¹

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Luhut's Historical Stance Against TPL

Luhut revealed that he has been opposed to TPL's operations since 2001 when he served as Minister of Industry and Trade under President Abdurrahman Wahid (Gus Dur). During a visit to the area, he witnessed local protests against the company, which was then known as PT Indorayon. The community complained about environmental damage, including pollution of Lake Toba and deforestation ¹

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Previous Actions and Current Proposals

Luhut claimed that he had ordered the suspension of Indorayon's operations in 2001, but the company resumed activities allegedly due to political lobbying. Now, Luhut has suggested that President Prabowo Subianto should reclaim the land managed by TPL and allow local farmers to work on it, potentially as part of a broader initiative to develop the Humbang Hasundutan area ¹

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Denial of Shareholding Allegations

Luhut has also challenged allegations that he holds shares in TPL, stating, "If someone accuses me of having shares, which shares? Show me. I have never owned shares" ²

. This denial comes amid heightened scrutiny of TPL's environmental impact and its alleged contribution to recent natural disasters in North Sumatra.

Environmental Impact Concerns

Luhut has been vocal about the environmental damage caused by TPL, stating that satellite imagery could prove the company's role in deforestation in Tapanuli. He described TPL as the primary cause of forest degradation in the area and argued that the company's operations were no longer beneficial ¹

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Conclusion

The controversy surrounding TPL highlights the ongoing tensions between economic development and environmental conservation in Indonesia. Luhut's statements have brought renewed attention to the issue, with potential implications for the company's future operations and the government's environmental policies.