Jakarta. Agrinas Palma Nusantara should undergo a comprehensive government audit after signs of plunging oil palm productivity and unresolved land permits raised concerns over the management of state-transferred plantation assets, the Center for Natural Resources Law Studies and Advocacy (Pustaka Alam) said on Friday.

"The audit is urgently needed so the government can determine exactly how much land is truly productive, which areas remain legally problematic, and which are ready to be managed," Executive Director of Pustaka Alam Muhamad Zainal Arifin said in a statement.

He said several key land permits remain unresolved, including plantation business licenses (IUP), spatial planning conformity approvals (KKPR), environmental approvals, forest area release permits, and land cultivation rights (HGU).

Zainal also questioned the government's transparency regarding assets transferred by the Forest Area Enforcement Task Force (PKH).

"There is a 4.11 million-hectare assignment, but it needs to be clarified whether the entire area is actually oil palm plantations or simply the total land transferred. The public has the right to know the real condition of these assets," he said.

He also pointed to discussions during a House of Representatives Commission VI hearing, indicating that plantation productivity had dropped sharply following the takeover. Fresh fruit bunch (FFB) yields reportedly fell from around 18 tons per hectare annually to just 6-6.5 tons per hectare, a decline of approximately 64-67%.

" The government must determine whether this was caused by deteriorating plantation conditions or shortcomings in management," Zainal said.

He added that consistent fertilization, harvesting, and plantation maintenance are essential to sustaining oil palm yields, warning that disruptions may not immediately affect output but would reduce production over the medium and long term.

The group emphasized the audit should focus on physically and legally verifying every parcel transferred by the PKH task force, distinguishing productive plantations from vacant or forested land while identifying plots affected by ownership disputes, overlapping HGU permits, community claims, or unresolved legal proceedings.

"The audit should produce a parcel-by-parcel map and inventory so the government knows exactly which assets are productive, which are problematic, and which are legally safe to manage," Zainal said.

Agrinas Palma previously reported a Rp 2.86 trillion ($159.6 million) operating surplus and Rp 27.9 billion in net profit for fiscal year 2025. The company also said it has taken over management of around 1.7 million hectares of oil palm plantations under its state mandate.

Zainal argued that the reported profit does not reflect the economic potential of the assets under Agrinas Palma's control. Of the 4.11 million hectares assigned to the company, only about 1.7 million hectares have been verified. Of those, roughly 730,000 hectares have been planted with oil palm, while only around 168,000 hectares were being directly managed by the company as of mid-2026.

Assuming the 730,000 hectares of productive plantations generated an average profit of Rp 25 million per hectare annually, Agrinas Palma could potentially earn around Rp 18.25 trillion a year, he said.

"That level of profit should be achievable if productive plantations are managed optimally. The Rp 27.9 billion net profit reported in the 2025 Annual Report did not come from plantation operations but was inherited from Indra Karya before it was transformed into Agrinas Palma," Zainal said.

He added that Agrinas Palma's performance should ultimately be measured by clear land legality, productive plantation area, yield per hectare, palm oil mill utilization, resolution of agrarian conflicts, and the amount of state revenue generated.