Indonesia Targets $8.5 Billion in Fines from Palm Oil and Mining Firms
Jakarta. The Attorney General’s Office has identified potential state revenue of Rp 142.23 trillion ($8.5 billion) from administrative fines imposed on palm oil plantation and mining companies found to have violated forest land-use regulations, Attorney General Sanitiar Burhanuddin said on Wednesday.
The potential revenue includes Rp 109.6 trillion from palm oil companies and Rp 32.63 trillion from mining firms operating illegally in forest areas, Burhanuddin told a press conference at his office in Jakarta.
“For 2026, there is significant potential for administrative fine revenue from palm oil and mining industries operating within forest zones,” Burhanuddin said.
His remarks came after the Attorney General’s Office symbolically handed over Rp 6.6 trillion in forestry-related fines to the state earlier the same day.
The handover ceremony was attended by President Prabowo Subianto and Finance Minister Purbaya Yudhi Sadewa, with stacks of rupiah banknotes arranged as a backdrop on stage.
Purbaya said the Rp 6.6 trillion in recovered fines would help ease pressure on the state budget deficit, which stood at Rp 560.3 trillion, or 2.35% of gross domestic product, as of Nov. 30.
“This additional funding gives me more ammunition to keep the deficit below the 3% target,” Purbaya said. “It can be used either to reduce the deficit or set aside as reserves to be spent next year.”
Tags: Keywords:Related Articles
How Indonesia Can Make Forest Protection Pay
Indonesia can make forest protection pay by channeling international climate funds through ecological fiscal transfers to local governments.Indonesia Recovers Rp 13.24 Trillion, 6.2 Million Hectares in Forest Crackdown
The task force has recovered Rp 13.24 trillion for the state while bringing more than 6.2 million hectares back under government control.Suahasil Inherits Fiscal Credibility Test as Investor Confidence Wavers
Suahasil Nazara faces pressure to restore fiscal credibility as investors seek consistent policies, clearer signals and market confidence.Indonesia’s Tax Chief Flags Irregularities in Purbaya’s Staff Reshuffle
Indonesia’s tax chief flags irregularities in Purbaya’s staff reshuffle over merit-based appointments.US Investors Not Worried by Indonesia’s Finance Minister Switch
US-ASEAN Business Council says that American investors are more concerned about the policy changes rather than who is helming the ministry.Suahasil’s Return Puts Fiscal Discipline at Center of Prabowo’s Economic Policy
Suahasil Nazara takes over as finance minister, with policy consistency and fiscal discipline emerging as key challenges.Suahasil Told to Avoid Business Cost Hikes, Tax Refund Delays
Businesses have laid out their wishlist for the newly appointed Finance Minister Suahasil Nazara.Purbaya Admits Sudden Exit ‘Partly’ due to Internal Shuffling
Ex-Finance Minister Purbaya Yudhi Sadewa speaks up on his sudden dismissal.Indonesian Stocks Gain as Investors Await Suahasil’s Fiscal Policy
Indonesian stocks opened higher as investors weighed Suahasil Nazara’s appointment as finance minister and awaited his fiscal policy.Suahasil Promises Credible, Trusted Finance Ministry after Purbaya Exit
The new Finance Minister pledged credibility and economic stability as experts urged him to go beyond maintaining the fiscal status quo.The Latest
Prabowo Calls Meeting on Forest Fires as Haze Reaches Jakarta, Singapore
Prabowo summons senior officials to discuss forest fires as smoke reaches Jakarta and Malaysia pushes for regional action.Jakarta Outranks Amsterdam in Global Public Transport Survey
Jakarta climbs two places to 15th in Time Out's 2026 public transport survey, with its governor citing better network integration.MSCI Concerns, Tighter IDX Trading Rules Send Indonesian Stocks Down 5% by Midday
Indonesian stocks plunge 5% by midday as MSCI concerns weigh on sentiment and the IDX tightens its daily downside limit to 7%.Jakarta Prepares 367 Health Facilities as Haze Reaches the Capital
Jakarta prepares 367 health facilities to treat potential haze-related illnesses after smoke from Sumatra and Kalimantan crosses the region.Jakarta Expands Flood Prevention With New Water Storage Ponds
Jakarta opens two East Jakarta water storage ponds as it expands flood prevention efforts through reservoirs and river normalization.Most Popular
