Indonesia steps up handing confiscated palm plantations to state company

JAKARTA: Indonesian authorities will hand over more land that has been seized in probes into illegal palm plantations to new state company Agrinas Palma Nusantara, officials said on Wednesday, turning the company into a major industry player.

Indonesia, the world’s top palm oil producer, launched an effort this year to improve governance of its forest and palm oil cultivation after facing criticism that the plantations are a major driver of deforestation.

Prosecutors on Wednesday handed over to Agrinas 216,997 hectares (536,211 acres) of plantation areas confiscated from 109 companies, Attorney General official Febrie Adriansyah said, adding to more than 221,000 hectares handed over earlier this month. Agrinas is expected to continue running the plantations.