Toba Pulp Lestari Suspends Mill Operations after Government Flooding Order

PT Toba Pulp Lestari Tbk (INRU) has temporarily halted production, harvesting and wood transportation after Indonesia’s forestry authorities ordered a suspension of forest product activities in its licensed areas across Aceh, North Sumatra and West Sumatra. The move follows fatal floods across Sumatra, with the company cited among firms suspected of contributing to environmental degradation in the Batang Toru watershed and wider region. A separate instruction from North Sumatra’s Environmental and Forestry Service also ordered Toba Pulp Lestari to stop all eucalyptus logging and transport, including wood from people’s plantations. Management says the halt is a precaution amid extreme weather, warning of delayed revenues and knock-on impacts for suppliers, contractors, local MSMEs, transporters and nearby communities. The company is maintaining essential asset care and plantation management while coordinating with central and regional governments during the investigation and policy review period.