Indonesia will intensify efforts to combat the illegal exploitation of its natural resources, President Prabowo Subianto announced on Friday, after a government survey found 3.7 million hectares of palm plantations operating unlawfully, an area nearly the size of Switzerland.
Delivering his first state of the nation address ahead of the country’s 80th Independence Day celebrations, Prabowo said a total of 5 million hectares of plantations were under investigation for encroaching on protected forests, misreporting land size, or ignoring auditors’ summons.
“We will ensure that the Indonesian people will not fall victim to greedy economics,” he told parliament, adding that the state had already seized 3.1 million hectares of illegal plantations with military support to overcome resistance.
Critics, however, warn that Prabowo, himself a former special forces commander, may be expanding the military’s role in civilian affairs.
The president also threatened to confiscate assets of companies that “manipulate and violate” laws, warning of similar crackdowns in the mining sector, where authorities have identified over 1,000 illegal operations. He did not specify the commodities involved.
Indonesia is the world’s largest producer of palm oil and nickel, and a leading exporter of coal, tin, and copper.
The Indonesian Palm Oil Association (GAPKI) questioned the accuracy of the government’s figures, warning the claims could damage the industry’s global reputation. GAPKI chief Eddy Martono said many companies cited as illegal hold permits such as land-use concessions and ownership certificates.
Prabowo also pledged to act against commodity hoarding, introducing new rules requiring large rice mills to obtain permits to maintain affordability.
Markets reacted nervously: Jakarta’s benchmark stock index hit a record high as Prabowo began speaking, but later closed 0.4% lower, while the rupiah slipped 0.3%.
Written By Rodney Mbua
