Palm oil plantation productivity below potential; advocacy group suggests audit

Muhamad Zainal Arifin, Director of the Natural Resources Law Study and Advocacy Center (Pustaka Alam), has called for an immediate government audit of seized palm oil plantations now managed by PT Agrinas Palma Nusantara. Zainal stated that the company's success should not be measured solely by the vastness of the land it manages, but by its ability to operate these assets productively, legally, and to generate tangible benefits for the state and its people.

"An audit is urgently needed so the government can ascertain precisely how much land is truly productive, which areas have legal issues, and which are ready for management," Zainal said in a press release. He noted that PT Agrinas Palma Nusantara reported a surplus of Rp 2.86 trillion and a net profit of Rp 27.9 billion in 2025, managing approximately 1.7 million hectares of palm oil plantations assigned by the state. Zainal believes these profits do not reflect the full economic potential of the assets.

According to Pustaka Alam, out of a total assignment of about 4.11 million hectares, only 1.7 million hectares have been verified. Of this verified area, palm oil has only been planted on about 730,000 hectares. Furthermore, as of mid-2026, only about 168,000 hectares are being managed independently by the company. This raises concerns about the actual utilization and productivity of the seized lands.

Zainal pointed to discussions in a hearing with Commission VI of the House of Representatives, which indicated a significant decline in productivity. The yield of fresh fruit bunches (TBS) per hectare per year has reportedly dropped from around 18 tons to only 6-6.5 tons. "Mathematically, the decrease is around 64 to 67 percent. The cause must be investigated," Zainal urged, emphasizing the need for transparency and accountability in managing these state assets.