Indonesia steps up handing confiscated palm plantations to state company

Indonesian authorities are transferring control of over 427,000 hectares of land confiscated from 109 companies, previously used for illegal palm plantations, to the new state-owned company, Agrinas Palma Nusantara. This move is part of the country's efforts to improve forest and palm oil cultivation governance following criticism for deforestation. Agrinas is expected to continue operating these plantations, with plans to increase production. However, concerns have been raised about the potential impact on palm oil output due to changes in plant care since the transfer of plantation ownership. A significant portion of the confiscated land, roughly 1 million hectares, is being considered for further verification and potential transfer to Agrinas, which could make it the largest plantation company in the country.

Indonesian authorities will hand over more land that has been seized in probes into illegal palm plantations to new state company Agrinas Palma Nusantara, officials said on Wednesday, turning the company into a major industry player. Indonesia, the world’s top palm oil producer, began efforts this year to improve governance of its forest and palm oil cultivation after facing criticism the plantations were a major driver of deforestation. Prosecutors handed over 216,997 hectares (536,211 acres) of plantation areas confiscated from 109 companies to Agrinas, Attorney General official Febrie Adriansyah said, adding to the more than 221,000 hectares handed over earlier this month. Agrinas is expected to continue running the plantations. “Agrinas Palma must be ready with their leadership to make sure the production will not drop, and should even be increased,” said Defence Minister Sjafrie Sjamsoeddin, who is leading the task force set up by President Prabowo Subianto to identify ...