KONTAN.CO.ID - JAKARTA. Indonesia's government will pursue legal action against palm oil companies that use land illegally if they do not submit required paperwork related to land use by November, a senior minister Mahfud MD said on Tuesday.

Indonesia earlier this year identified 3.3 million hectares (8.1 million acres) of the country's nearly 17 million hectares of palm oil plantation were located in areas designated as forest.

The illegal use of land has cost the Indonesian economy 42 trillion rupiah in losses, Mahfud said.

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"If they violate the rules and don't want to cooperate until the specified time, yes, in November there will be legal action," Mahfud said.

Under a 2020 law, plantations inside Indonesia's forest areas can be recognised as legal if they meet a number of requirements and pay fines.

Editor: Yudho Winarto