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View all search resultsGovt suspends four firms suspected of contributing to deadly North Sumatra flooding
The government assessed that there were relations between activities of the three companies with natural disasters affecting several regions in North Sumatra.
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Local residents walk across logs used as a temporary bridge on Dec. 7, 2025, following flash floods in Batang Toru, South Tapanuli regency, North Sumatra. (Reuters/Willy Kurniawan)
T
he Environment Ministry has temporarily halted the operations of four companies working in the upstream Batang Toru river basin area following the devastating floods and landslides in North Sumatra.
The four companies are private gold miner PT Agincourt Resources, state-owned plantation firm PT Perkebunan (PN) III, independent power producer PT North Sumatera Hydro Energy (NSHE) and palm oil company PT Sago Nauli.
Environment Minister Hanif Faisol Nurofiq said the decision was made because the companies were suspected of playing a significant role in exacerbating the flooding in North Sumatra.
“We are investigating eight companies operating in the area. Four have been suspended, and we will conduct environmental audits of their operations. Our team is also conducting on-site verification of the remaining four,” he said on Monday, as quoted by Kompas.com.
The decision followed the minister’s inspection of the Batang Toru river basin and Garoga on Friday, part of an effort to determine the causes of the disaster and to assess whether business activities had heightened flood and landslide risks.
Read also: How deforestation turbocharged Sumatra's deadly floods
Hanif stressed the importance of an overall evaluation of all business activities around the river basin area, especially with extreme rain, reaching more than 300 millimeters per day.
