JAKARTA: President Prabowo Subianto on Wednesday (Jan 7) said that Indonesia may seize an additional four million to five million hectares of palm oil plantations in 2026.
In 2025, his task force, which comprises the military, the police and state prosecutors, took over 4.1 million hectares said to be operating illegally in forest areas, targeting major palm oil companies and smallholder farmers alike.
“We have controlled, have taken over four million hectares of palm oil plantations that have violated the laws. Isn’t that right, state attorney?” Prabowo said at a rice harvest ceremony with farmers.
“In 2026, maybe we will seize four or five million more,” he said.
Indonesia, the world’s biggest producer of palm oil, has a total of 16.8 million hectares of palm oil plantations.
Launched in early 2025, the military-backed campaign has unnerved the palm oil industry, with analysts predicting that in combination with Indonesia’s ambitious biodiesel plans, the seizures could put even more upward pressure on global prices by disrupting production.
Some 1.7 million hectares of the seized plantations were transferred to state-owned company Agrinas Palma Nusantara, transforming the firm from an infrastructure services company to the world’s largest palm oil company by area.
Attorney-General Sanitiar Burhanuddin said in December that the government could collect US$6.5 billion in fines from palm oil companies implicated in the seizure in 2025. - Reuters
