Indonesia imposes $310 million fines on palm oil companies operating in forests
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On Friday, Indonesia announced its intention to impose fines totaling 4.8 trillion rupiah ($310.1 million) on palm oil companies operating within forest areas.
According to Firman Hidayat, an official from the Ministry of Maritime Affairs and Investment, fines exceeding 475 billion rupiah ($30.7 million) have already been issued.
However, Hidayat did not disclose specific details or identify the companies that received the fines.
In the previous month, Indonesia disclosed its identification of approximately 200,000 hectares (494,210 acres) of oil palm plantations located in regions designated as forests.
These areas are slated to be reclaimed by the state for conversion back into forested areas.
As the world’s largest producer and exporter of palm oil, Indonesia implemented regulations in 2020 to address the legality of plantations operating in zones designated as forests.
The objective is to enhance governance within the sector.
Authorities emphasized the need for these measures because certain companies have already managed the land for an extended period.
According to the regulations, companies must submit documentation and pay fines by November 2, 2023, to secure cultivation rights for their plantations.
While 3.3 million hectares (8.1 million acres) of the country’s almost 17 million hectares of palm plantations are situated in forested areas, only owners of plantations totaling 1.67 million hectares have been identified.
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