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Soybean Oil — Chicago (CBOT)
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Soybean Oil — Dalian (DCE)
$744
Sunflower Oil — FOB Black Sea
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NewsOils and Fats Sector Coverage

Indonesia Hands Over 1.8 Million Hectares Of Seized Palm Oil Land To State Firm

Fats and oils processing
August 20, 2026
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زيت النخيل أصبح وقودا لسيارات السباقات

Indonesia's Attorney General's Office has transferred 1.8 million hectares of confiscated palm oil plantations to state-owned company Agrinas Palma Nusantara, with the aim of managing the land and contributing to state revenue.

Speaking after a separate asset handover ceremony in Pangkal Pinang on Monday, the head of the Attorney General's Office's Legal Information Centre, Anang Supriatna, said: "The handover of confiscated plantations is being carried out in stages."

According to Anang, the total area of confiscated plantations currently under the control of the Attorney General's Office stands at 3.4 million hectares, covering palm oil concessions and illegal mining operations within forest areas. Of that figure, 1.8 million hectares have been transferred to Agrinas Palma Nusantara, a state-owned company focused on palm oil and green energy business.

"So far, we have handed over 1.5 million hectares to Agrinas, and the process has been carried out in four stages," Anang said.

He explained that the Forest and Mining Land Settlement Task Force (Satgas PKH) continues to identify and recover plantation and mining areas operating illegally, in order to bring them back under state control.

"At present, the measures taken against unlicensed companies operating in forest areas remain administrative in nature, primarily involving fines," he said, adding that criminal prosecution would follow if company owners fail to cooperate.

The task force, which was formed to reclaim illegally exploited land, has secured 3.4 million hectares so far, out of the government's target of 4 million hectares.

Anang also noted that the mechanism for imposing fines on offending companies is still under discussion. "We are still determining the value of the penalty. For those involved in criminal activity, legal proceedings will move forward accordingly," he said.

He praised the progress made by the task force, highlighting the cooperation between the Attorney General's Office, the military, the police and other relevant agencies. "We also encourage the public to report any unlicensed palm oil or mining operations still active within forest areas," Anang added.

Source: Bernama