Indonesia’s US$1.67 billion China-backed dam is in limbo. Why?

South China Morning PostEN 2 min read 100% complete by Resty Woro YuniarFebruary 16, 2026 at 01:00 AM

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Indonesia's government revoked permits for 28 companies, including North Sumatera Hydro Energy (NSHE), the developer of the US$1.67 billion China-backed Batang Toru hydroelectric project, on January 20 due to allegations of forest damage. The decision followed an audit after deadly floods and landslides in Sumatra in November 2023, which killed over 1,200 people and were blamed on deforestation. President Prabowo Subianto presented the permit revocations as a significant enforcement effort against illegal plantation development in protected forests. While environmental groups welcomed the move, questions have been raised regarding transparency and due process, as some officials were reportedly not fully informed. The situation has created uncertainty for investors in Indonesia's renewable energy sector.

Key Entities & Roles

Key Player Opposition Context

London 30% World Economic Forum 30% Forest Area Regulation Task Force 40% Aceh 50% North Sumatra 50% West Sumatra 50% Batang Toru ×260% China 70% North Sumatera Hydro Energy (NSHE) 70% Prabowo Subianto ×380% Indonesia ×490%

Keywords

permit revocation 90% indonesia 90% forest damage 80% hydropower project 70% floods and landslides 70% environmental impact 60% prabowo subianto 60% deforestation 60% renewable energy 50% china-backed 50%

Sentiment Analysis

Neutral

Score: -0.10

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Source

South China Morning Post

Classification Confidence

90%

This article was automatically classified using rule-based analysis.

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permit revocation indonesia forest damage hydropower project floods and landslides environmental impact prabowo subianto deforestation renewable energy china-backed

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