Luhut Pandjaitan Denounces Allegations of Ties to Controversial Pulp Company TPL, Calls for Land Reclamation
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A senior Indonesian official has vehemently denied connections to PT Toba Pulp Lestari (TPL), a North Sumatra-based wood processing company facing scrutiny over its environmental impact, adn is pushing for a significant shift in land ownership. The move comes as TPL’s operations are once again under the spotlight following reports of contributing to recent regional disasters.
Chairman of the National Economic Council (DEN) Luhut Binsar pandjaitan has consistently refuted any involvement with TPL, asserting that he has opposed the company – formerly known as PT Indorayon – for over two decades.He detailed a long history of concern dating back to his tenure as Minister of Industry and Trade during the presidency of Abdurahman Wahid (Gus Dur).
A History of Opposition: From Indorayon to TPL
Pandjaitan stated his opposition began in the early 2000s, recalling witnessing firsthand public demonstrations against Indorayon. “If I’m honest, I have rejected the existence of PT Toba Pulp lestari (formerly known as PT Indorayon) for more than 20 years,” he said, referencing a statement originally posted on his official Instagram account @luhut.pandjaitan on January 12, 2026.
During one such exhibition, Pandjaitan actively engaged with protestors to understand their grievances. He recounted the community’s concerns, stating, “‘This is destroying the habitat, sir. The water is going into Lake Toba too.Then it smells too. Then there are the pieces of wood too.’ So you can imagine,in 2001 alone,the people already understood about the environment.”
Direct Intervention and Subsequent Reopening
Driven by these concerns, Pandjaitan directly appealed to President Gus Dur to halt Indorayon’s operations. “at that time it was Gus Dur’s era, I proposed it straight after coming home from there. So we just suspended it. We just closed it,” he explained. While the company was initially shuttered,Pandjaitan alleges that “political lobbying” ultimately led to its resumption of activity.
Pandjaitan has as characterized TPL as a primary driver of deforestation in the Tapanuli region. He claims to possess Satellite Imagery Evidence – Pandjaitan claims to have satellite imagery from the Kisake years demonstrating the extent of the environmental damage attributable to the company. A visual comparison of satellite images from before and after TPL's operations would powerfully illustrate the extent of deforestation.
Proposal for Land Reclamation and Agricultural Progress
Now, with TPL once again facing public criticism, Pandjaitan has reportedly proposed a radical solution to President prabowo Subianto: the reclamation of TPL-managed land for agricultural use.Land Reclamation Proposal – Pandjaitan has proposed relinquishing the TPL land so that farmers can work there, and establishing a seed factory for horticulture in Humbang Hasundutan. “When I went to the President (prabowo), I reported to him that in my opinion, Mr President, now that you have ordered genome sequencing to be made, and to become a seeding industry, a seed factory for horticulture in Humbang Hasundutan, yes, sir, relinquish the TPL land, so that farmers can work there, the people,” he stated.
Pandjaitan believes TPL has already extracted sufficient value from the land and that its continued operations are detrimental. Pandjaitan’s Stance on TPL – “So, in my opinion, there’s no point in Toba Pulp anymore. Toba Pulp, that’s enough. That’s actually not true,” he concluded, signaling a firm stance against the company’s continued presence in the region.
The proposal aims to transform the land into a hub for horticultural development, benefiting local farmers and communities. This move represents a significant escalation in the ongoing debate surrounding TPL’s environmental and social impact, and signals a potential turning point in the future of land use in Tapanuli.
