Indonesia has Seized 5 Million Hectares of Palm Oil Plantations, Task Force Says



KONTAN.CO.ID - JAKARTA, March 2 - Indonesia has seized 5 million hectares of palm oil plantations and industrial forest concessions that have been accused of legal violations, with more than 100 companies fined, a spokesperson with the country's forestry task force said on Monday.

Last year, the forestry task force, which comprises the military, the police and state prosecutors, took over 4.1 million hectares said to be operating illegally in forest areas, targeting major palm oil companies and smallholder farmers alike.

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The task force has so far collected 7.39 trillion rupiah ($438.45 million) from 51 palm oil companies, task force spokesperson Barita Simanjuntak told a press conference.

Another 20 companies have already agreed to pay a total 2.78 trillion rupiah in fines, while 34 others have filed objections. The financial penalties imposed on other firms were still being calculated.

Some of the firms are contesting the fines because they say authorities have overestimated the amount of land involved, while others simply don't have the means to pay, said Simanjuntak.

Others claim that their permits are in order, but they have been found to overlap with other concessions, he said.Indonesian government agencies have often issued different permits for the same plot of land.

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"Of course we will make checks," Simanjuntak said.

Attorney General Sanitiar Burhanuddin said in December the government could collect $6.5 billion in fines from palm oil companies implicated in last year's seizure.

The government has handed over 1.7 million hectares of the seized plantations to state firm Agrinas Palma Nusantara, he added, while more than 770,000 hectares have been transferred to the environment and forestry ministries.