JAKARTA - PT Toba Pulp Lestari Tbk (INRU) has decided to temporarily terminate the operation of its pulp factory due to the lack of wood, following lawsuit made by communities in the company’s Forest Utilisation License areas in Parmaksian, Toba, North Sumatra.

Hendry, Legal & Litigation Head of Toba Pulp Lestari, confirmed that the company began to halt its operation starting yesterday (11/12) until February 29, 2024. “The termination applies to several parts of operational areas with Forest Utilisation License,” he said in the information disclosure quoted Wednesday (13/12).

According to Hendry, this temporary halt to factory operation will cause decline in the company’s revenue from production goods. On the other hand, it will also adversely affect economy of locals around operational areas.

It is mentioned that the company is working on amiable dispute resolution. However, should amiable process fail to take place, the company will comply with legal court, which will be held in District Court of Tarutung, in order to ensure no harmful effects imposed on the company’s investment.

INRU is known to face a lawsuit regarding Silangit Airport extension and Community Timber Plantation partnership program of 59 hectares (Ha). The lawsuit value reaches IDR 8.61 billion, consisting of material loss settlement of IDR 7.61 billion and moral damage settlement of IDR 1 billion.

As of September 2023, this issuer posted sales of USD 71.88 million, down from USD 119.99 million seen in the same period in 2022. The gross profit plummeted from USD 22.91 million to USD 2.38 million, resulting in loss of USD 15.47 million from the initial profit of USD 8.12 million. (LK/ZH)