Jakarta. The Agrarian Affairs and Spatial Planning Ministry is taking action against 537 palm oil companies operating without land-use rights certificates, amid concerns over tax revenue losses and regulatory compliance.

The ministry is currently organizing, evaluating, and temporarily halting the application, registration, and issuance processes for these companies' land-use rights certificates (HGUs), according to Minister Nusron Wahid during a press briefing at the parliament building in Senayan, Jakarta, on Wednesday.

Nusron indicated that the government will impose sanctions on palm oil entrepreneurs lacking HGU certificates, which could include tax penalties and suspensions of registration and HGU certification issuance.

"The details of the sanctions are being assessed, with the tax penalties being calculated by the Financial and Development Supervisory Board (BPKP). The legal issues will fall under the jurisdiction of the Attorney General," he said.

As for the financial impact, the ministry has yet to calculate the tax revenue losses associated with the 537 companies as they are in the process of reconciling data with the BPKP.

Two primary issues plague the palm oil sector: plantations located in areas designated for other uses (APL), which fall under the ministry's supervision, and those in forest areas, governed by the Ministry of Forestry.

"There are 2.5 million hectares of plantations located in areas designated for other uses, and that falls under our authority," Nusron explained.