Luhut Urges Prabowo to Revoke Toba Pulp Lestari Permit

PAPER INDUSTRY NEWS

Jino John

1/19/20262 min read

National Economic Council Chairman Luhut Binsar Pandjaitan has recommended that President Prabowo Subianto revoke the permit of PT Toba Pulp Lestari (TPL). Luhut stated he has opposed TPL's presence for 20 years. "I am not just opposing (TPL's presence). I suggest to the President that it be revoked. How can one person control nearly 200,000 hectares of land there? That's not right," Luhut said in a post on his official Instagram account @luhut.pandjaitan on Tuesday (13/1). TPL's operations in Sumatra are seen as benefiting only certain parties and risking environmental damage. "Those rich people enjoy our natural resources, live abroad, (then) take the money out. What do we get? Just this damage," Luhut emphasized. In a video lasting over three minutes, Luhut said he rejected TPL more than 20 years ago. The opposition stemmed from witnessing community complaints since 2001 about Lake Toba becoming increasingly murky and odorous due to TPL's activities. "In my view, there's no benefit to having Toba Pulp there. Toba Pulp is already enough. That's not right. If someone accuses me of owning shares (in TPL), which shares? Show them," Luhut explained. He added that TPL's presence has damaged surrounding forest areas. From this, Luhut learned a key lesson: development must not sacrifice community living spaces. According to Indonesia Stock Exchange disclosure data, 92.54 percent of Toba Pulp Lestari shares are held by Hong Kong-based investment firm Allied Hill Limited, with the remaining 7.46 percent owned by the public. Allied Hill is a holding entity fully owned by Everpro Investments Limited, belonging to Joseph Oetomo. Meanwhile, TPL Director Anwar Lawden stated that since starting operations, TPL has conducted business within official government permits, including environmental approvals, Timber Harvest Work Plan (RKUPHHK), and routine oversight by relevant agencies, while openly supporting evaluation and clarification by authorities. "All company operations adhere to principles of sustainable forest management, ecological prudence, and clear, documented, consistently monitored Standard Operating Procedures (SOP)," Anwar said in a written statement. He explained that out of a total area of 167,912 hectares, the company develops eucalyptus plantations on about 46,000 hectares, while the rest remains as protected and conservation zones. Previously, on Monday (24/11), North Sumatra Governor Bobby Nasution recommended the central government shut down TPL operations. This followed ongoing agrarian conflicts between the company and indigenous communities in Buntu Panaturan, Sihaporas Village, Pematang Sidamanik District, Simalungun Regency. Bobby assured the North Sumatra Provincial Government would send an official letter to the central government within one week of the recommendation. He said this step is crucial as TPL operations span 12 regencies in North Sumatra.