A sugarcane company, PT. Menara, obtained the permits to clear half of the rainforest-rich Aru Islands: 480,000 hectares (1.2 million acres) form the 730,000 ha of remaining natural forest. In 2010, then regent of Aru Islands, Teddy Tengko, issued licenses, permits, and recommendations for the use of 480,000 ha as plantations for 28 companies. All companies are subsidiaries of the PT. Menara Group, a private company in the plantation sector. According to environmental groups, Menara Group obtained a Plantation Business Permit (SIUP) before obtaining the required Environmental Permit Letter, in blatant violation of the legislation.

"The permit documents released show a violation ofEnvironmental Law No. 32/2009 and Spatial Planning Law No. 26/2007," said Abu Meridian, of Forest Watch Indonesia. Converting forests into sugarcane plantations will have negative impact on the existing eco-system. The Aru islands are famed for biodiversity. Conversion to plantation would destroy of habitat for various species endemic to the Wallacea region, including birds of paradise (Paradisaea Apoda), tree kangaroos "If the Menara Group moves ahead with their plans for sugarcane plantations and massive conversion of natural forest, it can be certain that biodiversity in both land and the waters of Aru Islands will become extinct", Abu Meridian said.

Large-scale land clearing will have an equally severe negative impact on the lives of local communities and indigenous peoples who have inhabited these areas for generations. "The concessions in question takes away the rights of indigenous communities over their territories. The livelihoods of local communities depend closely on existing natural resources and tenure security, and both will be destroyed. The local government of Maluku, through the existing land clearing plan, has denied the right by indigenous communities to benefit from fisheries and land use, both mainstays for Maluku community development" said Abdon Nababan, of the Indigenous Peoples Alliance of the Archipelago (AMAN).