SOEs Take Over 28 Companies Following Permit Revocations

RRI.CO.ID, Jakarta - The Indonesian government is set to transfer the operations of 28 companies, whose environmental permits were recently revoked, to State-Owned Enterprises (SEO) via Danantara. State Secretary Minister, Prasetyo Hadi, remarked that the government aims to ensure economic activities continue despite the revocation of business licenses.

"Ongoing economic ventures that provide employment must be preserved. We have decided to hand over their management to our SOEs," Minister Prasetyo told reporters in Jakarta on Friday, January 30, 2026.

The government is taking firm action against violating companies by revoking their operating permits. At the same time, it remains committed to maintaining economic stability, especially since these firms employ a significant workforce.

"Law enforcement is being upheld against violating companies. However, we must consider the national interest and job creation. If economic activity is necessary, there is no reason not to continue it," he asserted.

The government has instructed the appointed SOEs to implement rigorous governance reforms within these private entities. Minister Prasetyo explained that these improvements would be tailored to the specific nature of each company’s violations.

"Even though these are economic activities, we demand improvements in management. For instance, if there are environmental issues or outstanding obligations, they must be rectified," he noted.

He further explained that the mechanism for asset transfer and management would vary by case. For example, regarding a forestry company in Mentawai, core operations will be halted, and the affected local community will be transitioned toward the tourism sector.

"There are some cases where we feel operations should not continue, such as the forestry firm in Mentawai. I ask that this not be generalized, as each case requires a different approach. We are carefully considering these solutions," he added.

"While core activities in Mentawai are being stopped, we must provide for the community that has depended on them. We will focus on fostering a tourism ecosystem in collaboration with the Home Affairs Ministry, the Tourism Ministry, and the Transportation Ministry," said Minister Prasetyo.

Previously, President Prabowo Subianto, through the Forest Area Orderly Task Force, revoked the permits of 28 companies for forest area utilization violations. This decisive action followed a series of hydrometeorological disasters in Aceh, North Sumatra, and West Sumatra.

The 28 entities include 22 Forest Utilization Business Permits (PBPH) covering both natural and plantation forests. The remaining six companies operate in the mining, plantation, and timber forest product utilization (PBPHHK) sectors. (Annaila Azzahra/Bambang MBKA)