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Official: Indonesia's Danantara will manage land seized by 28 companies linked to Sumatra flooding

A spokesperson for the country’s forestry taskforce told reporters that Danantara Indonesia, a sovereign wealth fund, will be taking over land taken from 28 companies linked to flooding and landslides on Sumatra.

Last week, President Prabowo revoked business permits for the companies for 'alleged environmental violations that worsened floods in Sumatra last year.

Barita Simanjuntak, spokesperson for the task force, said that the handover was already underway. She added that there would be "a comprehensive process" to minimise the impact on the workers and the surrounding communities of the removals.

These companies are active in a wide range of sectors, from oil palm and cocoa through to mining and power generation.

Anwar Lawden, the director of Toba Pulp, said that the company will work with the government to rescind the permit.

According to the government, the area of land that was taken from the 22 plantation and forestry firms listed on the list was approximately 1 million hectares (2.47 millions acres).

Danantara's spokesperson stated that the fund was unable to comment immediately. Bernadette Munthe, Reporter. Writing by Fransiska Nangoy. David Stanway, Mark Potter and Mark Potter (Editing)

(source: Reuters)