Indonesia Halts Agincourt, PTPN III Operations After Floods

(Bloomberg) — Indonesia has suspended the operations of three companies in Sumatra, saying it will investigate whether their land clearing activities triggered deadly floods and landslides that killed hundreds on the island.

The government has halted the operations of mining services company PT Agincourt Resources, state-owned plantation company PT Perkebunan Nusantara III and hydropower developer PT North Sumatera Hydro Energy and ordered them to conduct environmental inspections, Environment Minister Hanif Faisol Nurofiq said late Friday.

The decision came after an aerial survey revealed massive land clearing above where the companies operate, which could increase the risk of floods and landslides in the area.

Nurofiq said the three companies were summoned to the capital Jakarta on December 8 for questioning to assess the damage and ensure their operations comply with environmental regulations.

“We will not rule out the possibility of criminal action if violations that worsen the disaster are detected,” Hanif said.

The disaster caused by the hurricane killed more than 800 people in northern and western Sumatra, while more than a week later, 500 people are still missing.

Forest Minister Raja Juli Antoni told parliament on Thursday that the ministry would investigate 12 companies and found that mismanagement of forests had contributed to this. The ministry also plans to cancel forest concession permits issued by 20 companies for a total of 750,000 hectares of land in Sumatra and elsewhere in Southeast Asia, pending approval from President Prabowo Subianto. He did not name the companies.

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