Indonesia transfers 2.37M ha of seized plantations to state palm oil firm Agrinas

Indonesia’s forestry task force has transferred an additional 2.37 million hectares of seized plantations to state-owned Agrinas Palma Nusantara, according to The Edge Malaysia. The move is part of a broader government campaign to bring land deemed to be used in violation of forest utilization rules back under state control.

Following the latest handover on May 13, Agrinas now manages around 4.12 million hectares in total, making it the largest palm oil grower in terms of land bank size. The initiative is part of President Prabowo Subianto’s crackdown on illegal exploitation of natural resources and reflects a wider effort to tighten state oversight of strategic agricultural assets.

Authorities said the seized land was taken from companies accused of breaching forestry regulations. In addition, prosecutors reported the confiscation of more than 12,000 hectares from mining operators, highlighting the scale of the government’s enforcement actions across multiple resource sectors.

Agrinas was established in January 2025 through the restructuring of a state infrastructure services company as part of administrative reforms aimed at strengthening state control over strategic industries.

Analysts note that such measures could significantly reshape Indonesia’s palm oil sector by expanding the role of the state in one of the world’s most important vegetable oil markets.

Tags: Indonesia, palm oil