Batang Toru Hydropower Project to Pay $12.7m Environmental Fine, Cleared to Resume Operations

MORE ARTICLES

Ecobiz.asia — PT North Sumatra Hydro Energy (NSHE), developer of the Batang Toru hydropower plant in North Sumatra, will pay Rp200.6 billion (around $12.7 million) in non-tax state revenue (PNBP) as an environmental penalty following hydrometeorological impacts in the Batang Toru watershed.

Minister of Environment Hanif Faisol Nurofiq said the payment is scheduled to be made by mid-April 2026, in line with a court settlement agreement.

“In accordance with the court agreement, the payment will be made by mid-April,” Hanif said on April 7, 2026.

Read also:  ASEAN Must Not Become Global Waste Dumping Ground, Circular Economy Must Advance

NSHE was among 28 companies whose permits were revoked by President Prabowo Subianto in late January 2026, following findings by the Forest Area Enforcement Task Force (PKH) that linked corporate activities to hydrological disasters in North Sumatra, Aceh, and West Sumatra.

The Ministry of Environment filed a civil lawsuit against NSHE after field supervision concluded that the company’s activities had caused environmental damage. The case was registered at the South Jakarta District Court in January 2026.

Read also:  DevvStream Named Exclusive Partner for PLN Indonesia Power’s Solar Carbon Credit Portfolio

Under the lawsuit, the government sought to hold the company strictly liable for environmental losses and demanded compensation totaling Rp200.6 billion to be paid to the state.

The penalty comprises Rp87.97 billion in ecological losses, Rp51.67 billion in environmental economic losses, and Rp22.54 billion in ecosystem restoration costs. Additional components include Rp166 million in dispute verification costs, Rp32.58 billion linked to increased surface runoff due to land clearing, and Rp5.73 billion in sedimentation-related losses.

Read also:  Southeast Asians Back Rapid Coal Phase-Out to Tackle Climate Change: Survey

Hanif said the government has lifted the temporary suspension previously imposed on NSHE’s operations, citing reduced environmental pressure based on recent assessments.

“The suspension was intended to reduce environmental pressure. Based on our evaluation, the pressure has started to decline. However, the environmental audit will continue,” he said.

The reinstatement of the company’s environmental permit will depend on the ongoing environmental audit process, which remains a key requirement for continued operations. ***

LATEST STORIES

MORE ARTICLES

Indonesia Prepares Energy Sector Carbon Trading Rules, Targets Up to US$7.7 Billion in Green Financing

Ecobiz.asia — Indonesia’s Ministry of Energy and Mineral Resources (ESDM) is preparing new regulations for carbon trading in the energy sector as part of...

Chinese Firms Dominate Interest in Danantara Waste-to-Energy Power Projects

Ecobiz.asia — Investor interest in Indonesia’s waste-to-energy power plant projects being developed by Danantara Investment Management (DIM) has surged in the second round of...

Indonesia’s SBK Carbon Project Advances Toward Credit Issuance With Potential for 4 Million VCUs

Ecobiz.asia — The South Barito Kapuas (SBK) Forest Carbon Project in Central Kalimantan, Indonesia, has completed validation and verification under the Verified Carbon Standard...

SSTC Forum Advances South-South Collaboration on Renewable Energy Transition

Ecobiz.asia — Developing countries are strengthening collaboration on renewable energy development, technology transfer, and capacity building through the South-South and Triangular Cooperation on Renewable...

Southeast Asians Back Rapid Coal Phase-Out to Tackle Climate Change: Survey

Ecobiz.asia — More than 80% of people in Singapore, Malaysia and Indonesia are concerned about climate change, while a majority support a rapid phase-out...

TOP STORIES

Indonesia Prepares Energy Sector Carbon Trading Rules, Targets Up to US$7.7 Billion in Green Financing

Ecobiz.asia — Indonesia’s Ministry of Energy and Mineral Resources (ESDM) is preparing new regulations for carbon trading in the energy sector as part of...

TuK Indonesia Soroti Minimnya Partisipasi Publik dalam Revisi POJK Keuangan Berkelanjutan, Desak Pencegahan Greenwashing

Ecobiz.asia — Transformasi untuk Keadilan Indonesia (TuK Indonesia) mendesak Otoritas Jasa Keuangan (OJK) memperkuat perlindungan hak asasi manusia (HAM) dan pengawasan praktik greenwashing dalam...

Penguasaan Kehutanan yang Kedodoran

Oleh: Pramono Dwi Susetyo (Pernah Bekerja di Kementerian Lingkungan Hidup dan Kehutanan, Penulis Buku Seputar Hutan dan Kehutanan, dan Membangun Hutan Menjaga Lingkungan) Ecobiz.asia...

Siapkan Generasi Energi Bersih, Pertamina NRE Kenalkan Perdagangan Karbon di PGTC 2026

Ecobiz.asia – Pertamina New & Renewable Energy (Pertamina NRE) memperkenalkan konsep perdagangan karbon kepada mahasiswa dalam ajang Pertamina Goes to Campus (PGTC) 2026 di...

Kementerian ESDM Siapkan Regulasi Perdagangan Karbon Sektor Energi, Incar Pendanaan Potensial US$7,7 Miliar

Ecobiz.asia – Kementerian Energi dan Sumber Daya Mineral (ESDM) tengah menyiapkan regulasi perdagangan karbon sektor energi melalui penyusunan Rancangan Peraturan Menteri (RPermen) ESDM tentang...