December 12, 2025 | 10:12 am
TEMPO.CO, Jakarta - PT Toba Pulp Lestari Tbk (INRU) announced that it has temporarily halted its production, harvesting, and wood transportation activities, effective Thursday, December 11, 2025. The company is cited as partially responsible for the recent fatal floods across Sumatra.
The suspension of operations follows the company's receipt of an official letter from the Directorate General of Sustainable Forest Management, Ministry of Forestry, dated December 8, 2025. The letter instructed the temporary suspension of access to forest product management within the Business Licensing Utilization of Forest (PBPH) areas across Aceh, North Sumatra, and West Sumatra.
In addition, the company also received a letter from the Head of the North Sumatra Provincial Environmental and Forestry Service dated December 10, 2025, instructing the company to cease all logging and transportation of eucalyptus wood, including that sourced from People's Wood Plantations (PKR).
"[This is undertaken] as a precautionary measure against the impact of floods and extreme weather," the management stated in a disclosure to the Indonesia Stock Exchange on Thursday, December 11, 2025.
The management confirmed that the decision to halt operations demonstrates compliance with instructions from both the central and regional governments. Financially, the company anticipates a potential delay in revenue receipt during this period of operational suspension.
Furthermore, management acknowledged that the temporary suspension will impact various stakeholders, including suppliers, contractors, MSME actors, transportation services, and local communities dependent on the company's activities.
"The company will carry out socio-economic mitigation measures together with the regional government and stakeholders," the management stated.
Although factory operations have stopped, the company affirmed that it is continuing essential operational activities, including factory asset maintenance and plant care. This is being done "to maintain operational readiness until the Government policy is restored."
The company will continue to coordinate closely with the Ministry of Forestry, the North Sumatra Environmental and Forestry Service, and the government regarding the development of the situation.
Read: Gov't Seals Palm Oil Plantation Suspected of Causing Floods in Central Tapanuli
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