Snapshot: In January 2026, the Indonesian Ministry of the Environment filed a civil lawsuit against PT North Sumatra Hydro Energy (NSHE), the developer of the Batang Toru hydropower project in North Sumatra, Indonesia, over allegations its activities contributed to environmental damage that exacerbated the deadly 2025 floods that affected Sumatra. The lawsuit is one of six lawsuit seeking compensation over the damage caused by the floods. The case was settled in May 2026, after the parties agreed to a compensation. The case is closed.

The Batang Toru hydropower project, owned by PT North Sumatra Hydro Energy (NSHE), is a hydroelectric power plant project centred on a large dam on the Batang Toru River in South Tapanuli, North Sumatra, Indonesia. NSHE is a consortium with a majority 70% ownership by the Chinese state-owned company State Development and Investment Corporation (SDIC), 25% by the Indonesian state-owned PT Pembangunan Jawa Bali Investasi, and 5% by the Singaporean company Asia Hydria. Originally expected to be completed and operational by 2022, it has been mired in controversy over ecological concerns, community impacts, including impacts on livelihoods, and allegations of intimidation of opponents.

In late 2025, torrential rains led to catastrophic floods and landslides in Sumatra, which killed more than 1,000 people. Environmental experts pointed to deforestation as having exacerbated the disaster.

On 20 January 2026, the Indonesian Ministry of the Environment, filed a civil lawsuit against NSHE before the South Jakarta District Court, one of six lawsuits brought against companies accused of contributing to environmental damage linked to the floods. The lawsuit asks the court to declare NSHE strictly liable and seeks more than IDR200.6b (around USD11m) in compensation, including ecological losses, economic environmental losses, and recovery costs.

The case was resolved through mediation between the Environmental Ministry and PT NHSE followed before the court. According to the government, the parties have agreed to a compensation in line with what the government was seeking (IDR200.6b). The court validated the agreement on 26 May 2026. The case is closed.

Separately, in January 2026, the Indonesian government announced the revocation of permits for 28 companies, including NSHE’s permit for the BatangToru project. However, later reporting indicated the permit was reinstated in April 2026 and that the government expected the project to become operational in October 2026.