Indonesia Seizes and Returns $784 Million from Palm Oil Corruption Case to State

The Attorney General’s Office on Monday formally handed over Rp 13 trillion ($784 million) in seized assets from a major crude palm oil (CPO) corruption case involving three major corporations. The funds were officially transferred to the state in a ceremony attended by President Prabowo Subianto, marking a milestone in Indonesia’s efforts to strengthen law enforcement and recover public losses.

President Prabowo said the recovered money should be redirected to projects that directly benefit the people, such as school renovations and coastal village development.

“With Rp 13 trillion, we could renovate more than 8,000 schools,” Prabowo said during the handover ceremony at the Attorney General’s Office in Jakarta.

He added that the seized funds could also finance the construction of around 600 fishing villages, potentially benefiting five million coastal residents.

In his remarks, Prabowo stressed the scale of lost development opportunities caused by corruption and exploitation in Indonesia’s natural resource sectors. He said the palm oil corruption case illustrates how Indonesia’s natural wealth has too often been misused for private gain.

“Corruption in strategic sectors like palm oil is not only harmful but also inhumane, as it once made it difficult for people to access affordable cooking oil,” Prabowo said.

The president reiterated his administration’s commitment to firm and fair law enforcement to safeguard national wealth and ensure that future economic gains are shared more equitably. He also highlighted the need to intensify crackdowns on illegal mining and smuggling of strategic commodities, which have long caused significant losses to the state.

The Rp 13 trillion handed over represents part of the Rp 17.7 trillion in restitution ordered by the court against three corporate groups — Permata Hijau Group, Musim Mas Group, and Wilmar Group — found guilty of conducting illegal palm oil exports.

Of the total, Wilmar Group has fully paid its share, while Permata Hijau Group and Musim Mas Group are still completing their payments in accordance with court rulings.

Attorney General Sanitiar Burhanuddin said the restitution demonstrated the Attorney General’s firm commitment to enforcing the law for the benefit of the people.

“Everything we do is for the people’s welfare,” Burhanuddin said in Jakarta.

He stressed that fair law enforcement must not only focus on punishment but also on economic recovery through the restitution of state losses.

“Our goal is to ensure justice while restoring the economy for all Indonesians,” he added.

The ceremony was also attended by Defense Minister Sjafrie Sjamsoeddin and Finance Minister Purbaya Yudhi Sadewa.

Inside the event hall, piles of seized cash filled the room, serving as a striking visual symbol of Indonesia’s largest-ever corruption asset recovery.

Burhanuddin noted that the total amount of cash was so massive that it could not all be displayed at once.

“It was impossible to bring the full Rp 13 trillion here. The space simply couldn’t hold it — so only about Rp 2.4 trillion is shown today,” he said.

He confirmed that the seized funds were being fully transferred to the state through the Ministry of Finance, underscoring a new phase in Indonesia’s ongoing campaign to restore public confidence and ensure that corruption recoveries directly support national development.

Tags: funds, Indonesia, Crude palm oil, assets, corruption