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Indonesia's attorney general said on Wednesday the government has identified potential fines worth up to US$8.5 billion (34.38 billion Malaysian ringgit) that could be collected in 2026 from palm oil and mining companies operating illegally in forest areas.
The forest task force set up by President Prabowo Subianto, comprising military personnel, police, prosecutors and government officials, has this year launched an unprecedented crackdown on plantations and mines located in areas that authorities say should have remained forest.
The military-backed campaign has rattled the palm oil industry, with analysts expecting the seizures, combined with Indonesia's ambitious biodiesel plans, to add further upward pressure on global prices by disrupting production.
Attorney General Sanitiar Burhanuddin, speaking at a ceremony held in front of towering stacks of red rupiah banknotes, said the task force had already seized 4.1 million hectares (9.8 million acres) of illegal plantations and mines, a total area roughly equivalent to the size of the Netherlands.
Burhanuddin also handed the finance minister more than 2.34 trillion rupiah (US$139.70 million, or 560 million ringgit) in fines collected by the task force from 20 palm oil companies and one nickel mining firm.
"For 2026, there is potential to generate revenue from administrative fines imposed on palm oil plantations and mines within forest areas of up to 109.6 trillion rupiah (US$6.54 billion) for palm oil, and 32.63 trillion rupiah (US$1.95 billion) for mining," Burhanuddin said.
The attorney general did not name any of the companies.
Burhanuddin also transferred more than 240,500 hectares of plantations to state-owned company Agrinas Palma Nusantara, which was established in early 2025. Agrinas's total landholding has now reached 1.7 million hectares, cementing its position as the world's largest palm oil company by area.
During the ceremony, President Prabowo praised the task force and launched a scathing attack on those he said had tried to drain Indonesia's resources, as well as foreign powers seeking to undermine his government.
"Although the work and the journey are difficult, my instinct tells me that in 2026 we will take even bolder steps... we will save this nation's wealth without hesitation," he said.
Indonesia is the world's largest exporter of palm oil, thermal coal, nickel and tin.
Source: Reuters