Ministry Sanctions 67 Companies Over Devastating Sumatra Floods

RRI.CO.ID, Jakarta - The Indonesian Ministry of Environment has launched a major legal crackdown on dozens of companies following devastating floods across Sumatra. This move directly links industrial land clearing to the region's increasing vulnerability to hydrometeorological disasters.

During a working meeting with Commission XII of the House of Representatives (DPR) in Jakarta on Monday, April 7, 2026, Environment Minister, Hanif Faisol Nurofiq, revealed that 67 companies across Aceh, North Sumatra, and West Sumatra Provinces have been hit with administrative sanctions for their role in exacerbating last year's flood crisis.

The enforcement follows a rigorous verification process covering 175 companies operating in the mining, palm oil, and forestry sectors. Investigators found that these entities were linked to the clearing of a staggering 1.8 million hectares of land.

"The process ranges from issuing administrative sanctions to criminal proceedings, while some environmental approval processes at the provincial level have been delegated to the respective local administrations. Some forestry-related cases were returned to the forestry department, and of those 175 entities, two were found to be non-operational," said Minister Hanif, as quoted by Antara.

Of the companies targeted, 22 business units have already been ordered to undergo mandatory environmental audits under government compulsion, with another 45 units currently in the process of being sanctioned.

Beyond administrative penalties, the Ministry is pursuing aggressive legal action, including six criminal cases and civil lawsuits against six companies in North Sumatra, with total claims reaching a massive IDR 4.9 trillion (USD 289.77 million).

The Ministry’s investigation also highlighted a dangerous disconnect between existing regional spatial plans (RTRW) and strategic environmental assessments (KLHS), a gap that Minister Hanif noted has significantly worsened the severity of local disasters. To mitigate future risks, the Ministry has conducted a rapid environmental assessment to guide post-disaster reconstruction and urban planning.

"We have prepared detailed post-disaster housing plans with spatial directions down to the sub-district level. We have identified which locations must be avoided for permanent housing and which areas still possess the carrying capacity for rapid housing development," explained Minister Hanif.

These findings have been submitted to relevant authorities as a blueprint to prevent the recurrence of such catastrophic flooding. ***

Source: https://www.antaranews.com/berita/5514109/klh-beri-sanksi-67-perusahaan-terkait-banjir-sumatera