Indonesia to run palm plantations seized from troubled firm
10/03/2025 (Bloomberg) - The Indonesian government took over management of palm oil plantations seized from a corporation facing a graft probe, under an initiative that may be extended to other troubled commodity-production sites.
State-owned PT Agrinas Palma Nusantara will take over the running of 221,000ha (546,000 acres) — roughly the size of Tokyo — in Riau and West Kalimantan provinces from Duta Palma Group, based on a deal signed at a press conference by State-Owned Enterprises Minister Erick Thohir and Attorney General ST Burhanuddin on Monday.
The plantations were seized by the Attorney General’s Office as part of a long-running corruption probe into Duta Palma, which allegedly cultivated the area without proper permits between 2003 and 2022, according to media reports. The firm is optimistic it can win the case, which will allow them to get their assets back, said Handika Honggowongso, the company’s lawyer.
Indonesia, the world’s biggest palm oil producer, has been trying to clamp down on illegal plantations since 2019 in an attempt to boost state revenues. Authorities will also seize and transfer other commodity assets under the initiative, saying it’s necessary for continued operations while companies tackle long legal processes.
“We are seeking help for other cases as well, like for mines, where we face limits in managing the asset, whereas state-owned enterprises have the capability to manage them,” said Febrie Adriansyah, assistant attorney general for special crimes, at the press conference in Jakarta.
Jakarta-based Agrinas Palma, currently headed by retired armed forces general Agus Sutomo, was established in January by repurposing state-owned construction company PT Indra Karya, according to its website.