Indonesia may seize up to 5 mln more ha of palm oil plantations in 2026

Indonesian President Prabowo Subianto said the government may seize an additional 4 million to 5 million hectares of palm oil plantations in 2026. The move would target plantations found to be operating in violation of the law, particularly those located in forest areas.

According to the president, a special government task force comprising the military, police and state prosecutors took control of about 4.1 million hectares of illegally operated plantations in 2025. The campaign affected both large palm oil producers and smallholder farmers.

Prabowo said the government is determined to continue the effort. “We have already taken over more than 4 million hectares of palm oil plantations that violated the law. In 2026, we may seize another 4 to 5 million hectares,” he said during a rice harvest ceremony with farmers.

Indonesia is the world’s largest producer of palm oil, with total plantation area estimated at around 16.8 million hectares. The campaign, launched in early 2025, has unsettled the palm oil industry. Analysts warn that, combined with Indonesia’s ambitious biodiesel plans, the land seizures could disrupt production and add upward pressure on global prices.

Around 1.7 million hectares of the seized plantations were transferred to state-owned Agrinas Palma Nusantara, effectively transforming the company from an infrastructure services firm into the world’s largest palm oil company by plantation area. Indonesia’s attorney general has said the government could collect up to $6.5 billion in fines from companies implicated in last year’s seizures.

Tags: Indonesia, palm oil