Indonesia is in the midst of its largest crackdown on illegal forest use in the country's history. As a result, the government could soon collect up to $8.5 billion in fines throughout 2026 from palm oil and mining companies operating in protected forest areas.
As reported by Reuters, Indonesian President Prabowo Subianto's forestry task force had a very busy year in 2025, specifically targeting a number of illegal palm oil operations within the country. The campaign has already reclaimed large tracts of land from a number of illicit plantations and mines.
During a press conference, attorney general Sanitiar Burhanuddin applauded the efforts of the task force, which was composed of military personnel, police, prosecutors, and government officials. Burhanuddin revealed that more than 4.1 million hectares of land have been reclaimed as part of the sprawling campaign.
Of that reclaimed land, 240,500 hectares have been transferred to state-run palm oil company Agrinas Palma Nusantara, which now boasts more than 1.7 hectares of land, making it the largest palm oil company in the world by area.
While this has signaled the widespread regulation of the palm oil industry and a major enforcement push against deforestation, Indonesian officials are also eyeing a massive payday. Burhanuddin noted that more than 2.34 trillion rupiah, or about $140 million, in fines have already been collected from 20 palm oil companies and one nickel miner.
But that amount could be just a drop in the bucket when all is said and done.
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"For 2026, there is revenue potential from administrative fines from palm oil plantations and mines within forest areas, amounting to 109.6 trillion rupiah [$6.54 billion] for palm oil and 32.63 trillion rupiah [$1.95 billion] for mining," said Burhanuddin.
Despite the challenges surrounding the ongoing government initiative to consolidate and effectively manage its palm oil resources, Prabowo remained confident that the country would continue to head in the right direction.
"Even though the work, the journey is tough, I have an instinct in 2026 we will take even bolder steps ... We will save this nation's wealth without hesitation," Prabowo said.
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