(Bloomberg) — Indonesia suspended the operations of three companies in Sumatra, saying it would probe whether their land-clearing activities helped trigger the deadly floods and landslides that killed hundreds on the island.
The government halted the operations of mining services company PT Agincourt Resources, state-owned plantation firm PT Perkebunan Nusantara III and hydro power developer PT North Sumatera Hydro Energy and ordered them to conduct an environmental audit, Environment Minister Hanif Faisol Nurofiq said in a statement late Friday.
The decision came after an aerial inspection revealed a massive land clearing upstream from where the companies operated that may have increased the risks of flooding and landslides in the area.
Nurofiq said the three companies have been summoned to the capital Jakarta on Dec. 8 for questioning to assess the damage and to ensure that their activities complied with environmental regulations.
“We will not rule out the possibility of criminal proceedings if violations are found that exacerbated the disaster,” Hanif said.
The cyclone-driven catastrophe has killed more than 800 people in northern and western Sumatra, while 500 remain missing more than a week later.
Forestry Minister Raja Juli Antoni told parliament on Thursday that the ministry will investigate 12 companies, saying that mismanagement of forests appeared to have contributed. The ministry also plans to revoke forest-concession permits held by 20 companies for a combined 750,000 hectares of land in Sumatra and elsewhere in the Southeast Asian nation, pending approval from President Prabowo Subianto. He didn’t name the companies.
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