Indonesia Cancels Permits of 28 Companies, Halting $1.67 Billion China-Backed Dam
February 16, 2026
Indonesia's government has halted the $1.67 billion Batang Toru hydroelectric dam project by cancelling permits of 28 companies. North Sumatera Hydro Energy (NSHE), the project's developer, is among those affected. The move came after a quick audit by the Forest Area Regulation Task Force targeting firms operating in forest areas across the provinces of Aceh, North Sumatra, and West Sumatra. On January 20, the permits were revoked due to alleged damage to protected forests. Prabowo, speaking from London during a cabinet Zoom meeting, said, "Two days ago, I led a cabinet meeting by Zoom from London, and we decided to revoke the licences of 28 corporations that had licences over 1.01 million hectares because we found them violating laws. They were building plantations on protected forests." He added, "Combined with the 4 million hectares of plantations already confiscated, we have in fact enacted the boldest, the most daring forest law-enforcement effort in the history of Indonesia." The sudden enforcement has unsettled renewable energy investors, as these actions were taken without informing the energy regulators beforehand.
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Tags:
Indonesia
Hydroelectric Dam
Forest Protection
Permit Cancellation
Renewable energy
Government Crackdown
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