The government has revoked the permits of 28 companies found to have violated environmental conservation regulations in Sumatra. The revocation was carried out in response to a series of hydrometeorological disasters that have affected Aceh, North Sumatra, and West Sumatra. The 28 companies were considered to have committed multiple violations, including operating outside their officially permitted areas and failing to fulfill obligations to the state, such as tax payments.
A lecturer at the Faculty of Forestry of Universitas Gadjah Mada (Forestry UGM) and forest resource observer, Dr. Hatma Suryatmojo, stated that the companies were indeed found to have violated environmental conservation regulations.
These violations, he said, have serious implications for environmental sustainability.
Corporate violations can reduce forest cover in Indonesia and threaten forest conservation by causing ecosystem degradation, deteriorating forest conditions, and declining or even disappearing biodiversity.
“Natural disasters such as floods, erosion, and landslides are likely to occur if companies proven to have violated regulations are allowed to continue operating,” Dr. Suryatmojo said on Monday (Jan. 26).
Dr. Suryatmojo assessed that the government’s decision was certainly based on accurate data regarding the companies’ violations. Several factors may underlie permit revocation, including failure to meet obligations to the state, such as paying taxes.
In addition, companies may have conducted operations that did not comply with Standard Operating Procedures (SOPs) or government regulations, for example, by causing environmental damage that was not properly managed.
Companies operating outside their designated concession areas also face the possibility of permit revocation.
“As long as there is a clear legal basis, this policy allows us to protect forest areas from disturbance and ensure that biodiversity remains preserved,” he added.
On the other hand, Dr. Suryatmojo acknowledged that the permit revocation policy can serve as an example that the government’s granting of concession permits for the use of land and forest areas must be accompanied by corporate compliance with applicable regulations.
He emphasized the importance of balancing natural resource use with environmental conservation. Every development activity that relies on natural resources must take into account its potential long-term impacts.
“In utilizing natural resources, including forest resources, we must uphold the principle of sustainability. Therefore, every action, including development-related activities, must always adhere to environmental sustainability principles to prevent environmental damage beyond designated areas,” Dr. Suryatmojo explained.
With the revocation of permits for these 28 companies, Dr. Suryatmojo hopes the government will act more swiftly to regulate concession permit holders. According to him, such violations cannot be allowed to persist.
To address similar cases, the Forest Area Enforcement Task Force (Satgas PKH) can assist with enforcement and the imposition of sanctions, thereby preventing the intended impacts.
“Sanctions imposed on companies proven to have violated regulations will not disrupt the investment climate. On the contrary, they will increase investor confidence that companies are committed to environmental protection, encouraging government support for responsible business activities,” he added.
Author: Diana
Editor: Gusti Grehenson
Post-editor: Zabrina Kumara Putri
Photograph: Forest Digest