Indonesia Revokes Three Forest Concessions Over East Kalimantan Fires

BALIKPAPAN, EAST KALIMANTAN – Indonesia has revoked the forest-utilization permits of three companies in East Kalimantan after fires were detected inside their concession areas, while authorities have ordered ecosystem restoration and warned that criminal proceedings could follow if violations are found.

Forestry Minister Raja Juli Antoni announced the decision while inspecting the fire-hit Bukit Tengkorak area, part of the Bukit Soeharto Forest Park within the broader delineation of Nusantara, Indonesia’s new capital, on September 14, 2026.

“The three companies have had their permits revoked, have been ordered to restore the ecosystem, and if there are indications of criminal activity, the cases will be forwarded to law enforcement and the provincial police,” Raja Juli said.

The companies are PT Fuji Sampurna Lestari in Berau, PT Diva Perdana Pesona in East Kutai and PT Inhutani I Tanah Grogot in Paser.

PT Fuji Sampurna Lestari holds a 14,605-hectare natural forest concession, with 82.26 hectares affected by fire. PT Diva Perdana Pesona holds a 29,429-hectare plantation forest concession, with 48.57 hectares burned.

PT Inhutani I Tanah Grogot holds a 15,336-hectare plantation forest concession, with 531 hectares affected by fire. Combined, the three concessions recorded around 662 hectares of burned area.

Nusantara Becomes a Priority

The enforcement action comes as wildfires have also threatened areas surrounding Nusantara, Indonesia’s new capital.

National Disaster Management Agency chief Lt. Gen. Suharyanto said four fire locations within the Nusantara area were still being handled at the time. Authorities deployed ground crews, water-bombing aircraft and weather-modification operations.

Nusantara Capital Authority chief Basuki Hadimuljono said fires had affected 671 hectares within the wider Nusantara area, including 460 hectares in Bukit Soeharto Forest Park and 163 hectares in Wonotirto.

Authorities stressed that the fires had not reached the Core Government Center. The nearest fire locations were reported to be approximately 20–30 kilometers from the government core area.

Indonesia Tightens Corporate Accountability

The East Kalimantan permit revocations form part of a broader government response to an intense wildfire season across Indonesia.

Reuters reported on September 17 that President Prabowo Subianto had called for tougher sanctions against those responsible for forest fires and said the government would take a zero-tolerance approach toward individuals and corporations found responsible. At the time, police had opened 219 criminal investigations, involving 162 suspects and scrutiny of 95 companies.

The fires have also become a regional issue. Indonesia has accepted assistance from Malaysia to help contain fires that have burned for weeks, while haze and air pollution have affected parts of Southeast Asia.

Reuters previously reported that Indonesian authorities were inspecting 19 companies with fires inside their concession areas across Sumatra and Kalimantan, covering a combined 11,047 hectares.

For East Kalimantan, the permit revocations put corporate responsibility for forest management under renewed scrutiny, particularly as fires have spread close to strategically important areas such as Nusantara.

For Indonesia, however, stopping the flames is only the first step. The larger challenge will be ensuring that burned areas are restored and prevented from becoming recurring fire zones.