Forestry, mining, and hydroelectric firms lose approval following audits that link environmental violations to flooding disasters.

Indonesia has stripped more than two dozen permits from forestry, mining, and hydroelectric companies in Sumatra, a government minister said Tuesday, weeks after deadly floods devastated parts of the island.

Environmentalists, experts, and officials have cited deforestation as a contributing factor in last year’s disaster, which killed more than 1,000 people across three provinces, according to the National Disaster Mitigation Agency.

A task force audited companies in the affected provinces and presented its findings to President Prabowo Subianto during a teleconference on Monday, State Secretariat Minister Prasetyo Hadi told reporters.

"Based on the report, the president has decided to revoke the permits of 28 companies that were proven to commit violations," Prasetyo said, without specifying the types of violations or which permits were affected.

The affected companies include 22 forestry firms operating over more than one million hectares, as well as six other companies including a mining firm and a hydroelectric power developer.

Prasetyo emphasized the government’s commitment to ensuring that natural resource-based businesses comply with existing regulations.

Analysis by conservation start-up The TreeMap’s Nusantara Atlas project found that more than 240,000 hectares of primary forest were lost in 2024.

Forests play a critical role in absorbing rainfall and stabilizing soil, and their absence increases the risk of flash floods and landslides, founder David Gaveau told reporters in December.

Indonesia consistently ranks among countries with the highest annual forest loss, with mining, plantations, and fires contributing to widespread rainforest clearance over recent decades.

Last week, the government filed multiple lawsuits seeking over $200 million in damages against six other companies accused of unspecified environmental harm.