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NewsOils and Fats Sector Coverage

Indonesia Investigates Palm Oil Plantations for Illegal Mining Activities

Fats and oils processing
October 28, 2026
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زيت النخيل أصبح وقودا لسيارات السباقات

Bahlil Lahadalia, Indonesia's Minister of Energy and Mineral Resources (ESDM), has announced a comprehensive investigation into several palm oil plantations suspected of conducting commercial mining activities without the necessary permits. This move aims to ensure regulatory compliance within the plantation sector and prevent land misuse.

The inspection process will be conducted jointly by the Directorate General of Law Enforcement (Gakkum) and an internal team from the Ministry of Energy and Mineral Resources. During a press conference on Monday, Bahlil stated that a coordination meeting had already been held to monitor and verify plantations suspected of doubling as mining sites.

The Minister highlighted his suspicion that several foreign companies are involved in these unauthorized mining activities. He emphasized that business permits must be strictly adhered to, asserting that companies holding licenses solely for crude palm oil cultivation are prohibited from engaging in any other commercial activities or generating revenue outside their specific mandates.

'As a former Minister of Investment, I must remind everyone that if a permit is issued for palm oil operations, no other business or income-generating activity should be conducted,' Bahlil remarked. He added that, based on reports from the Law Enforcement Directorate, a number of companies are currently undergoing in-depth investigations for allegedly exceeding their operational permits by engaging in exploration and other mining-related tasks.

Source: VOI.ID