InfoSAWIT, JAKARTA – Singapore-based palm oil company First Resources Ltd has paid US$5.6 million to the Indonesian government in relation to land handed over to the state.
According to Reuters, as published online by InfoSAWIT, Sunday (1/3/2026), the payment was disclosed in the company’s FY2025 financial report. First Resources described the amount as an “administrative charge” paid last year in connection with land areas requested to be surrendered following changes in forestry spatial planning regulations.
The company stated that the payment relates to “land areas that have been handed over” to the government due to regulatory adjustments affecting forest zones.
Task Force Seized 4.1 Million Hectares
Previously, a government task force seized approximately 4.1 million hectares of plantation land alleged to be operating illegally within forest areas. The move targeted several large palm oil companies as well as smallholders, with authorities indicating that enforcement actions would continue.
Indonesia’s Ministry of Forestry has included certain subsidiaries of First Resources in the list of entities suspected of illegal operations within forest zones.
In its statement, First Resources acknowledged the possibility of additional payments for areas identified by the task force but not yet surrendered. However, the company said it is currently unable to estimate the potential financial impact and did not disclose the size of the affected land.
CPO Production Up 30%
Operationally, First Resources recorded crude palm oil (CPO) production of 1.3 million tons in 2025, up approximately 30% compared to 2024. Palm kernel production also rose 32% to 289,999 tons.
Indonesia, the world’s largest palm oil producer, currently has around 16.8 million hectares of oil palm plantations.
Of the land seized by the task force, approximately 1.7 million hectares have been transferred to state-owned Agrinas Palma Nusantara, transforming the former infrastructure services firm into the world’s largest palm oil company by managed plantation area. (T2)
