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The Indonesian Ministry of Energy and Mineral Resources (ESDM) has launched an investigation into several foreign-owned palm oil plantation companies suspected of conducting unauthorized mining activities. This move comes as the government intensifies its oversight of businesses suspected of operating beyond the scope of their legal licenses.
Energy and Mineral Resources Minister Bahlil Lahadalia confirmed that the ministry has coordinated with internal officials and the law enforcement team (Gakkum) to facilitate monitoring and inspections of plantations suspected of housing mining operations. Speaking at a press conference on national energy security in Jakarta on Monday, October 26, 2026, Lahadalia stated that the investigation focuses on plantations allegedly operated by foreign entities engaging in mining alongside their agricultural activities.
Lahadalia emphasized the legal obligation for companies to operate strictly within the limits of government-issued permits. He noted that businesses licensed exclusively for palm oil cultivation are strictly prohibited from engaging in additional commercial ventures or generating revenue from unauthorized sources. 'As a former Investment Minister, I must remind everyone that if a permit is issued solely for palm oil operations, the company cannot conduct other business activities,' he remarked.
According to the minister, the ESDM's law enforcement division has already identified several foreign firms that are now under further scrutiny for potential activities outside their authorized business mandates. Reports from the enforcement team suggest that these companies may be operating in sectors not covered by their current licensing agreements.
This regulatory crackdown is part of a broader government strategy to strengthen the management of natural resources, ensure corporate compliance with national licensing laws, and safeguard Indonesia's strategic interests. As of now, the ministry has not officially disclosed the names of the firms involved or confirmed any specific violations.
Source: Indonesia Business Post