Indonesia’s Forestry Task Force Targets Palm Oil Sector; SD Guthrie Seeks Resolution Over 2,800 Hectares Affected
15/06/2026 (Sawit Indonesia), Jakarta - SD Guthrie, one of the world’s largest palm oil producers, is actively engaging with the Indonesian government following the enforcement actions of a specialized state task force aimed at cracking down on illegal plantation operations within forest areas.
The task force, established last year, to eliminate regulatory violations across the lucrative palm oil sector. In its initial sweeps, the unit seized approximately 4.1 million hectares of plantations identified as operating illegally within designated forest zones—a sweeping crackdown that has disrupted both corporate giants and smallholder farmers alike.
Speaking at a press conference on Thursday, SD Guthrie Chief Executive Mohd Haris Mohd Arshad confirmed that the company is currently working alongside Indonesian authorities to address the land issues. Around 2% of SD Guthrie’s total land bank in Indonesia, amounting to roughly 2,800 hectares, has been caught up in the task force’s seizures. Indonesia holds critical strategic value for the Malaysian firm, accounting for about one-third of its total global land holdings.
Despite the ongoing discussions, Mohd Haris clarified that the company’s day-to-day operations remain stable. SD Guthrie has not received any official government decree regarding its properties and continues to harvest its palm oil crops as usual.
During the brief, Mohd Haris also weighed in on Jakarta’s broader economic strategy, specifically its plans to consolidate top commodity exports under the oversight of a centralized state agency. He described the move as “understandable,” noting that the Indonesian government is rightly focused on plugging revenue leakages. He emphasized that SD Guthrie is not implicated in those financial concerns, reaffirming that the company remains one of Indonesia’s largest corporate taxpayers.
Looking ahead, the chief executive expressed confidence in the company’s ability to navigate current geopolitical and environmental headwinds. Despite a global supply crunch and rising fertilizer costs driven by ongoing conflicts in the Middle East, SD Guthrie expects minimal disruption, as it secures its fertilizer independently from a diverse supplier network including Canada, China, Belarus, and Egypt.