InfoSAWIT, JAKARTA – Indonesia's Ministry of Energy and Mineral Resources (ESDM) plans to inspect palm oil plantations suspected of conducting mining activities beyond the scope of their authorized business permits.
The investigation will include several companies, among them foreign-owned businesses suspected of engaging in activities not covered by their existing licenses.
Energy and Mineral Resources Minister Bahlil Lahadalia, who also serves as Coordinating Minister for Downstreaming and Energy Transition, said the ministry had held discussions with its law enforcement team and internal officials to follow up on the allegations.
Speaking at a national energy security press conference on Monday (October 26, 2026), Bahlil said the government would monitor and examine plantations suspected of also conducting mining operations.
According to Bahlil, the ministry's law enforcement team has reported several companies that are undergoing further scrutiny over potentially unauthorized business activities.
He emphasized that companies must operate within the scope of their government-issued permits. A company licensed solely for oil palm cultivation cannot use that authorization as a basis for conducting other business activities that require separate permits.
“If the permit is issued only for the palm oil business, companies are not allowed to conduct other businesses or generate income from other activities,” Bahlil said, as reported by InfoSAWIT on Tuesday (October 27, 2026).
The minister added that several foreign companies were being examined to determine whether their operations complied with applicable licensing requirements.
Strengthening Oversight of Natural Resources
The planned inspections form part of the government's broader effort to strengthen oversight of natural resource utilization and ensure that businesses comply with applicable regulations.
For oil palm plantation operators, compliance with licensing requirements is essential to maintaining legal certainty and ensuring that land and natural resources are used according to authorized purposes.
Companies conducting both plantation and mining operations must satisfy the relevant licensing requirements for each activity.
However, the allegations remain subject to investigation. Further examination by ESDM and its law enforcement team will help establish whether violations occurred and determine the appropriate legal response.
The government aims to ensure that business activities are conducted lawfully, with natural resources managed in an orderly manner and in the national interest. (T2)
