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View all search resultsLocal pulp producer braces for mass layoffs after permit revocation
Up to 80 percent of Toba Pulp Lestari’s workforce of more than a thousand employees may be affected after the government revoked its forest concession permit over environmental violations.
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PT Toba Pulp Lestari (TPL) workers install new technology into the cooking plants of the TPL factory in Toba Samosir regency, North Sumatra. (JP/Apriadi Gunawan)
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ublicly listed firm PT Toba Pulp Lestari is preparing to lay off a large portion of its workforce following the government’s decision to revoke the company’s operating permit, marking one of the most significant labor impacts stemming from recent forestry enforcement measures.
The pulp producer announced that it had begun communicating its termination of employment policy to workers between Thursday and Friday, with the layoffs set to take effect on May 12.
The move comes after the revocation of the company’s forest utilization permit (PBPH).
“The termination of employment was carried out as a result of the revocation of the company’s PBPH, which led to the cessation of forest utilization activities within the company’s PBPH area,” wrote the company in an Indonesia Stock Exchange (IDX) disclosure on Friday.
The firm’s corporate communication head Salomo Sitohang said the exact number of affected employees would only be finalized once the policy takes effect, but early estimates suggest the scale could be substantial.
“As an initial picture, around 80 percent of our total workforce may be impacted,” he said on Monday as quoted by Kompas.com, noting that the figure continued to change as some employees had already left since operations were suspended in December last year.
Based on the company’s 2025 annual report, Toba Pulp Lestari employed 1,149 workers, indicating that hundreds could face job losses.
