PALMOILMAGAZINE, JAKARTA – The Indonesian government has declared a fine of Rp 4.8 trillion for palm oil companies operating in forest regions. Firman Hidayat, Deputy in Maritime Coordination at the Ministry of Maritime and Investment, mentioned that the fine amounts are in progress, but he refrained from providing specific details or disclosing the companies subject to the penalties, as quoted by Voice of America.
Last month, the government identified about 200.000 hectares of palm oil plantations in forest regions. The areas would be returned to the country to be turned into forests again. This was the response to the companies for breaking the laws for operating in forest regions.
In 2020, the government published a regulation about legal plantations that should not operate in forest regions. This is about to improve palm oil plantation governance, which has become an environmental issue.
Also Read: Ensuring Legal Certainty in Palm Oil and Unpermitted Mining Activities in Forest Areas
Many officials told me that this fine is a must because some companies that operate in forest regions for years cause damage to forests that should be protected. According to the available regulations, the companies that get sanctions should deliver their documents and pay a fine to get cultivation rights on their plantations; the deadline was November 2, 2023.
Though of the total 17 million hectares of palm oil plantations in Indonesia, about 3.3 million hectares were operating in forest regions, 1,67 million hectares were successfully identified and should pay the sanction. (T2)
