Indonesia’s military‑backed forestry task force has intensified its crackdown on companies operating in areas without permits, warning that firms refusing to pay fines now face criminal action. The task force, established under President Prabowo Subianto, said dozens of plantation and mining companies have either ignored summonses or formally objected to the penalties.
In a statement to the media, government spokesperson Barita Simanjuntak said authorities would escalate enforcement against companies that continue to resist. He added that the task force would act against firms that “fail to appear for summons or continue unauthorised activities in forest areas,” describing the measures as necessary to uphold state authority.
The sweeping enforcement campaign — unprecedented in scale — has unsettled Indonesia’s palm oil and mining sectors with analysts saying the uncertainty has contributed to higher global palm oil prices and, more recently, rallies in metals such as tin, amid concerns that production could be disrupted.
Wood Central understands that authorities have already seized more than 8,800 hectares of mining concessions producing nickel, coal, quartz sand, and limestone, and have also moved against oil palm operations in 4.1 million hectares of forest land, an area roughly the size of the Netherlands.
Of the companies summoned, 25 of 32 mining firms and 29 of 83 plantation operators have either objected to the fines, failed to attend hearings, or requested delays. Even so, seven mining companies and 54 palm oil firms have paid or agreed to pay a combined 9.3 trillion rupiah (US$552 million) in penalties.
Companies that have complied include palm oil subsidiaries of the Salim Group, which paid the equivalent of US$136 million; Best Agro Group, which paid US$98 million; and a Sampoerna Agro unit, which paid US$57 million. Astra Agro Lestari has also settled fines totalling US$34 million.
Others have not. Goodhope Group – part of Sri Lanka’s Carson Cumberbatch conglomerate – and Singapore‑based Musim Mas Group face fines of US$107 million and US$20 million respectively, but did not attend scheduled summonses, according to the task force. Both companies have yet to comment publicly.
Indonesia’s Attorney General Sanitiar Burhanuddin previously said authorities had identified potential fines totalling 109.6 trillion rupiah for palm oil companies and 32.63 trillion rupiah for mining firms operating in forest zones without proper approval. The task force’s mandate includes recovering these losses and enforcing compliance across the sector.
