TEMPO.CO, Jakarta - Indonesian authorities will hand over more land that has been seized in probes into illegal palm plantations to new state company Agrinas Palma Nusantara, officials said on Wednesday, March 26, 2025, turning the company into a major industry player.

Indonesia, the world's top palm oil producer, launched an effort this year to improve governance of its forest and palm oil cultivation after facing criticism that the plantations are a major driver of deforestation.

Prosecutors on Wednesday handed over to Agrinas 216,997 hectares (536,211 acres) of plantation areas confiscated from 109 companies, Attorney General official Febrie Adriansyah said, adding to more than 221,000 hectares handed over earlier this month.

Agrinas is expected to continue running the plantations.

"Agrinas Palma must be ready with their leadership to make sure the production will not drop, and should even be increased," said Defense Minister Sjafrie Sjamsoeddin, who is leading the task force set up by President Prabowo Subianto to identify illegal plantations in designated forest areas.

The plantations being given to Agrinas were part of an area of around 1 million hectares the task force has confiscated.

Authorities will go through a verification process for the rest of the area and aim to hand over more plantations to Agrinas, Sjafrie told reporters.

If Agrinas is given control of all 1 million hectares, it will become the biggest plantation company in the country.

Coordinating Minister overseeing food supply Zulkifli Hasan said earlier this week that the initial 221,000-hectare area transferred to Agrinas would require upgrade or rejuvenation.

Areas found to be no longer feasible for commercial operation may be re-forested, a task force official said.

REUTERS | Bernadette Christina

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