ASIATODAY.ID, JAKARTA — PT Bridgestone Sumatera Rubber Estate (BSRE) is facing major challenges in Indonesia, as uncertainty surrounds the company’s land-use rights (HGU), which expired in 2022 and have yet to be renewed.
The issue has drawn sharp attention from Indonesia’s House of Representatives, which warned that prolonged legal ambiguity could undermine investment certainty, industrial sustainability, and social stability.
The concerns were raised during a working visit by the Indonesia’s House of Representatives Commission VII to Bridgestone’s operations in Simalungun Regency, North Sumatra, on Friday, January 23, 2026.
Commission VII member Bane Raja Manalu stressed that large-scale industries must now comply not only with economic targets but also with green industry principles and legal certainty.
“Industry must grow, but it must also be sustainable. Environmental protection and economic development have to go hand in hand. Green industry is no longer optional—it is mandatory,” Bane said.
Thousands Employed, but Rubber Productivity Under Pressure
PT Bridgestone Sumatera Rubber Estate currently employs more than 3,000 workers, with approximately 90 percent recruited from surrounding communities, including Simalungun Regency and Pematangsiantar City.
However, lawmakers noted that with more than 17,000 hectares of plantation land, the company still has room to improve productivity and labor absorption.
At the same time, the natural rubber industry is under strain from declining yields and volatile global rubber prices, factors that continue to pressure the competitiveness of upstream rubber producers.
Expired Land Rights Raise Legal Uncertainty
The most critical issue highlighted by the Parliament is the expiration of Bridgestone’s HGU permit in 2022, which remains unresolved as of early 2026.
According to Bane, the lack of clarity creates legal uncertainty not only for the company but also for investors and local communities.
“We want legal certainty and business certainty. Investment should not be left in limbo due to unresolved land permits,” he said.
Lawmakers warned that continued operations without renewed land-use rights could potentially trigger social tensions, while also damaging Indonesia’s broader investment climate, particularly in plantation-based industries.
Parliament Urges Government to Act Swiftly
Through its Industrial Competitiveness Task Force, Commission VII has urged the government to immediately resolve the extension of Bridgestone’s HGU, emphasizing the importance of maintaining industrial continuity, investor confidence, and community stability.
“This should be resolved quickly. Prolonged uncertainty will only create unnecessary unrest,” Bane added.
A’s reference, PT Bridgestone Sumatera Rubber Estate (BSRE) is an integrated natural rubber plantation and processing company located in Dolok Merangir, Simalungun Regency, North Sumatra. The company has been operating since 1916 and became part of Bridgestone Corporation in 2005.
BSRE specializes in producing crumb rubber, a key raw material for tire manufacturing. The company traces its origins to a Goodyear rubber plantation, before undergoing changes in ownership and corporate identity.
Today, BSRE is recognized as a long-standing supplier of high-quality rubber for both domestic and international markets.
Company Details:
Full Name: PT Bridgestone Sumatera Rubber Estate (BSRE)
Location: Dolok Merangir, Simalungun, North Sumatra, Indonesia
Core Business: Natural rubber plantations and crumb rubber processing
Established: 1916; became part of Bridgestone Corporation in 2005
Ownership: Subsidiary of Bridgestone Corporation, a global tire manufacturer based in Japan
Facilities: Five plantation divisions and integrated rubber processing plants
Role in the Rubber Industry
BSRE plays a strategic role in the global natural rubber supply chain, supplying high-quality raw materials for tire manufacturing and other rubber-based products in domestic and international markets. (AT Network)
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