InfoSAWIT, JAKARTA – State-owned company PT Agrinas Palma Nusantara is facing significant challenges in managing vast palm oil plantation assets, many of which are in poor condition.

Reported by InfoSAWIT from InfoSAWIT Magazine February 2026 Edition on Monday (April 13, 2026), President Director Agus Sutomo stated that the company currently manages approximately 1.5 million hectares of land acquired through asset transfers.

However, around 50% of the planted area is severely damaged, with 30% moderately damaged and only 20% in relatively good condition.

“These conditions require massive normalization efforts, with significant rehabilitation costs,” he explained.

Initial rehabilitation costs are estimated at IDR 1.74 million per hectare, highlighting the scale of financial resources needed.

The land acquisition process has been carried out in stages, involving assets from hundreds of companies across multiple provinces. However, administrative challenges such as land title verification (HGU) remain ongoing.

Despite these challenges, Agrinas remains optimistic about gradually restoring productivity and supporting the sustainability of Indonesia’s palm oil sector. (T2)