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View all search resultsToba Pulp Lestari to lay off 80% of workforce after license revocation
The pulp company has explained that its decision to lay off the majority of its workforce stemmed from the revocation of its PBPH, which led to the closure of its operations in forest concession areas.
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Batak community activists hold a rally on Nov. 10, 2025, at the North Sumatra Governor’s Office in Medan, demanding the closure of PT Toba Pulp Lestari over allegations of acquiring customary lands and causing ecological damage in the Lake Toba region.
(Antara Foto/Yudi Manar)
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T Toba Pulp Lestari (TPL) plans lay off 80 percent of its workforce next month after the government revoked its forest utilization business license (PBPH), following a crackdown on companies deemed to have contributed to the 2025 Sumatra disaster.
TPL director Anwar Laden said the company held meetings on Thursday and Friday to inform workers about the planned layoffs.
“The layoffs will be effective as of May 12,” Anwar said on April 27.
The company had decided to slash most of its workforce after its PBPH was revoked, which led to a halt in operations in its forest concession area, he said, adding that this was the primary reason for the efficiency move.
Anwar said the management would ensure the stability of Toba Pulp’s financial condition and business sustainability despite the potential for industrial disputes following the mass layoff.
“Laid-off workers should not be worried. Their right [to severance pay] will be paid in full by the company, even exceeding the government regulation,” corporate communication head Salomo Sitohang told The Jakarta Post on Monday.
“The exact number of laid-off workers has not been determined yet, but there will be hundreds, or some 80 percent from the current total of workers at TPL,” Salomo said.
