Indonesian forest concession holders controlling more than 1.5 million ha of natural forest have had their licences revoked by the government for failing to operate their estates sustainably.

The 13 companies include PT Maraga Daya, which is owned by timber giant PT Barito Pacific and controls around 68,000ha in East Kalimantan. Another firm affected, PT Artika Optima Inti I, controls 435,000ha of natural forest in Papua.

The government’s action follows an audit by the Independent Verification Institute which shows that 13 out of 27 companies did not manage their forest resources sustainably. Ownership of the forests will now be taken over by the Ministry of Forestry and transferred either to local communities or private investors.