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.”
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