Indonesia’s President Prabowo Subianto revealed that the government may reclaim an additional 4 to 5 million hectares of palm oil plantations in 2026 as part of an ongoing effort to enforce land use regulations and optimize natural resource management. This follows the successful takeover of about 4.1 million hectares in 2025 that were deemed to be operating illegally within forest areas, involving coordinated action by the military, police, and state prosecutors. Indonesia, the world’s largest palm oil producer with around 16.8 million hectares under cultivation, continues to strengthen oversight to ensure sustainable and lawful development of its plantation sector.
The farmland recovery initiative has not only reinforced state governance over critical resources but also enabled the transfer of seized land to the state-owned Agrinas Palma Nusantara, expanding its plantation footprint and strategic role. While the enforcement efforts have drawn attention from the industry and analysts — some noting potential impacts on global supply — the Indonesian government emphasizes that these measures are designed to uphold environmental integrity and long-term market stability.
