Toba Pulp Lestari Faces Mass Layoffs After Permit Revocation Amid Flooding Controversy in Sumatra

PT Toba Pulp Lestari Tbk (INRU) has announced a mass layoff of workers following the revocation of its forest concession permit, according to company statements and multiple Indonesian news outlets. The layoffs, which the company described as a significant efficiency measure, will take effect on May 12, 2026, after a two-day socialization period held on April 23–24, 2026. The decision stems directly from the government’s cancellation of the company’s Perizinan Berusaha Pemanfaatan Hutan (PBPH) permit covering 167,000 hectares of land in Sumatra, which occurred earlier in 2026. Company management confirmed that the termination of employment relationships is an unavoidable consequence of losing legal access to the concession area, which has disrupted its core forest-based operations. The revocation has forced the firm to halt all activities dependent on the permit, making workforce reductions necessary to stabilize remaining operations. PT Toba Pulp Lestari, a publicly traded pulp and paper producer, stated that the move reflects the critical importance of legal certainty and permit validity for natural resource–based industries. The company emphasized that the layoffs are a last resort after assessing the impact of the permit cancellation on operational scale and labor needs. The announcement has drawn attention from industry observers and the public, with many awaiting details on the company’s next strategic steps and any compensation plans for affected workers. No further specifics about severance or retraining programs were included in the initial disclosure.