Indonesia Revokes Permits for 28 Firms After Environmental Breaches and Deadly Sumatra Floods

The Indonesian government cancelled permits for 28 firms including a major hydro plant. This follows environmental breaches linked to deadly floods in Sumatra.

Insights:
The government of Indonesia IDIDofficially revoked the operating permits for 28 companies on Tuesday, January 21, 2026, citing environmental breaches that intensified deadly floods across the island of Sumatra. Among the most prominent entities affected is PT North Sumatra Hydro Energy, the operator of the Batangtoru hydropower facility. This regulatory enforcement follows widespread concern regarding the ecological impact of industrial projects in the region after the catastrophic floods that struck Sumatra in 2025.
The Batangtoru hydropower project is a significant infrastructure development valued at over $1.6 billion. It is controlled by the state-run SDIC Power Holdings Co. Ltd. , an entity based in China CNCN. While the facility was intended to bolster energy capacity, environmental activists have long called for the project to be stopped, pointing to the risk of ecological destruction on the biodiverse island. The government of Indonesiahas now explicitly linked the facility to environmental violations that underpinned the recent permit cancellations.
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