The Ministry of Forestry clarifies that PT Sumber Permata Sipora (SPS) has not yet obtained a Forest Utilization Business Permit (PBPH) to operate on West Sumatra’s Sipora Island, but  only a commitment approval issued on March 28, 2023, covering 20,710 hectares − or 33.66 percent of the island’s total area.

SPS applied for permits to utilize natural forest timber, non-timber forest products, and environmental services. However, the company must first fulfill several requirements, including mapping the geographic coordinates of its work area, completing an Environmental Impact Analysis (AMDAL), and paying the PBPH fees.

“We are holding back the permit issuance, because the AMDAL has not yet been completed,” Forestry Ministry spokesperson, Krisdianto, said in Jakarta on Monday, August 25, 2025.

He added that the AMDAL process − administered by the Environment Ministry − will include a public hearing session where local communities can provide feedback.

Saparis Soedarjanto, Secretary at the Directorate General of Sustainable Forest Management, the Forestry Ministry, emphasized that permits will only be processed after AMDAL approval.

“If the AMDAL is approved and issued, then it will proceed,” he said.

Addressing concerns about potential deforestation, the ministry said that SPS’s obligations will be outlined in its Business Work Plan (RKU) and Annual Work Plan (RKT).

“When harvesting timber, companies must apply selective cutting and carry out replanting,” Krisdianto cited, while stressing that this system provides certainty to the public regarding legal and controlled forest use.

So far, the Forestry Ministry’s Directorate General of Law Enforcement has not received any reports of land management violations on Sipora, an area of around 61,518 hectares classified as a small island under Indonesian law.

According to the Forestry Ministry, PBPH may still be granted on small islands as long as activities are confined to protected and production forests.

Article 23 of the Coastal and Small Islands Management Law stipulates that utilization of small islands and their surrounding waters must meet strict conditions, including environmental safeguards, water system sustainability, and the use of eco-friendly technology.