Sovereign Fund Takes Charge: Indonesia's Bold Move for Environmental Reform

The Indonesian sovereign wealth fund, Danantara Indonesia, is assuming control over land confiscated from 28 companies linked to environmental damage causing deadly floods in Sumatra. The government's forestry task force oversees the transition, ensuring minimal impact on workers and communities amid revoked business permits.

In a decisive step towards environmental reform, Indonesia's sovereign wealth fund, Danantara Indonesia, is set to manage land confiscated from 28 companies allegedly responsible for exacerbating floods and landslides in Sumatra. President Prabowo Subianto recently revoked the business permits of these firms due to environmental violations.

Barita Simanjuntak, spokesperson for the country's forestry task force, stated that the land transfer process is currently ongoing. The task force is implementing a comprehensive strategy to mitigate the impact of these permit removals on workers and local communities.

The land, spanning around 1 million hectares, was taken from firms in sectors such as forestry, oil palm, cocoa, power generation, and mining. Danantara has yet to comment on their new responsibilities.

(With inputs from agencies.)