Indonesia may seize another 5 million hectares of palm oil plantations in 2026
Analysts predict that the seizures could put even more upward pressure on global prices by disrupting production
[JAKARTA] Indonesian President Prabowo Subianto on Wednesday (Jan 7) said that Indonesia may seize an additional four to five million hectares (ha) of palm oil plantations this year.
Last year, his task force, which comprises the military, police and state prosecutors, took over 4.1 million ha said to be operating illegally in forest areas, targeting major palm oil companies and smallholder farmers alike.
At a rice harvest ceremony with farmers, Prabowo said: “We have controlled (and) taken over four million ha of palm oil plantations that have violated the laws...”
“In 2026, maybe we will seize four or five million more,” he added.
Indonesia, the world’s biggest producer of palm oil, has a total of 16.8 million ha of palm oil plantations.
Launched in early 2025, the military-backed campaign has unnerved the palm oil industry, with analysts predicting that in combination with Indonesia’s ambitious biodiesel plans, the seizures could put even more upward pressure on global prices by disrupting production.
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Some 1.7 million ha of the seized plantations were transferred to the state-owned company Agrinas Palma Nusantara, transforming the firm from an infrastructure services company to the world’s largest palm oil company by area.
Attorney-General Sanitiar Burhanuddin in December said that the government could collect US$6.5 billion in fines, from palm oil companies implicated in last year’s seizure. REUTERS
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