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Indonesian authorities said on Wednesday they will transfer more land confiscated in investigations into illegal palm plantations to the new state-owned company Agrinas Palma Nusantara, making it a major player in the industry.
Indonesia is the world's largest palm oil producer, and this year it launched efforts to improve governance of forests and palm cultivation after facing criticism over the role of plantations in deforestation.
On Wednesday, prosecutors handed over 216,997 hectares (536,211 acres) of plantation land confiscated from 109 companies to Agrinas, according to prosecution official Febrie Adriansyah, adding to more than 221,000 hectares handed over earlier this month.
Agrinas is expected to continue operating these plantations, according to Defence Minister Sjafrie Sjamsoeddin, who leads the task force set up by President Prabowo Subianto to identify illegal plantations in forested areas. He said:
"Agrinas Palma must be ready under its leadership to ensure production does not decline — it must actually increase."
These plantations form part of nearly one million hectares confiscated by the task force, with the remaining land to be verified before more is handed over to Agrinas, Sjafrie told reporters.
Should Agrinas be granted control of the full one million hectares, it would become the country's largest plantation company.
Coordinating Minister for Food Affairs Zulkifli Hasan said earlier this week that the 221,000 hectares already transferred to Agrinas would need development or rehabilitation.
A task force official said areas deemed unsuitable for commercial investment could be reforested.
Source: Reuters