26 Company Permits Frozen, Forestry Ministry Opens Path to Corporate Criminal Sanctions for Forest Fires
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- Kementerian Kehutanan menjatuhkan sanksi administratif berupa pembekuan izin usaha terhadap 26 korporasi yang terindikasi lalai mencegah kebakaran hutan dan lahan.
- Penindakan tidak berhenti pada pembekuan izin: perusahaan wajib menjalani paksaan pemulihan lingkungan, dan berkas dapat dilimpahkan ke kepolisian jika ditemukan unsur pidana.
- Langkah ini menjadi uji pertama efektivitas penegakan hukum lingkungan terhadap korporasi besar di tengah tekanan musim kemarau dan pengawasan publik yang meningkat.
The Ministry of Forestry (Kemenhut) has officially frozen the business permits of 26 companies deemed to have failed to carry out their obligations to control forest and land fires (karhutla) in their respective concession areas. The decision was announced by Forestry Minister Raja Juli Antoni after a working meeting with Commission IV of the DPR RI in Jakarta on Wednesday, and signals that the state is beginning to shift enforcement pressure from mere appeals to administrative action with a direct impact on corporate operations.
According to Raja Juli, freezing permits is not a single step. Three layers of consequences have been prepared: first, freezing business permits; second, government coercion to carry out environmental restoration; and third, referral to criminal proceedings if investigators find indications of legal violations by corporations. "This is part of how we improve law enforcement," he said, stressing that the nomenclature used is administrative sanction, not permanent permit revocation.
Notably, Kemenhut has not disclosed the identities of the 26 companies, the locations of their concessions, or the duration of the freeze. The absence of these details leaves room for interpretation among market players and civil society organizations, especially since the forestry and plantation sectors often come under scrutiny when hotspots increase during the dry season. On the other hand, the Directorate General of Forestry Law Enforcement (Gakkum Kehutanan) is handling 46 ongoing cases, consisting of 15 corporations and 31 individuals. Two of them have entered the P21 stage, while the rest are still under investigation and inquiry.
The enforcement pattern throughout August–September 2026 shows consistent escalation. Six holders of Forest Utilization Business Licenses (PBPH) were sanctioned after supervision found forest and land fires in their managed areas totaling 1,511.55 hectares. Five companies were subject to government coercion, and one other received both a permit freeze and restoration coercion. Shortly afterward, five PBPH holders in West Kalimantan were again hit with similar sanctions. For Kemenhut, this step is a follow-up to companies' obligation to prevent and control fire in their respective working areas.
"First, freezing business permits. Second, coercion to restore the environment. Third, if there are indications of criminal activity, we will continue to criminal proceedings coordinated with the police." — Raja Juli Antoni, Minister of Forestry
From a governance perspective, freezing permits creates a chain effect that is not simple. Companies whose permits are frozen lose their operational rights temporarily, but still bear legal obligations and restoration costs. If criminal proceedings follow, corporate legal risk could escalate to environmental crime with fines and asset freezes. However, without transparency on the list of companies, the public will find it difficult to assess whether sanctions are imposed proportionally or instead target only certain entities. The lack of information also makes it difficult for investors holding shares in the forestry, plantation, and energy sectors to calculate their portfolio risk.
For readers in Indonesia, especially businesses and investors, the main signal from this policy is that environmental compliance is now a real risk variable. Companies that fail to demonstrate adequate forest and land fire prevention systems risk losing permits, facing restoration coercion, and even dealing with criminal law. Regional governments in Sumatra and Kalimantan are also required to prepare firefighting and supervision support, in line with the President's directive that fire must not enter the core zone of IKN. On the other hand, the wider public has a direct stake because forest and land fires affect air quality, health, and daily economic activity.
The remaining question: will the permit freeze be followed by transparency on the list of companies and measurable restoration deadlines, or will it again become an administrative sanction that is difficult for the public to evaluate? The answer will determine whether this year's environmental law enforcement truly changes corporate behavior, or is merely an annual cycle that repeats every dry season.
