Indonesian Military Seizes Control of Palm Oil Plantation in Borneo Amid Industry Crackdown

Indonesian soldiers in full fatigues marched onto a private palm oil plantation on Borneo island in late June, posting a signboard that declared the estate under government control, according to accounts from plantation managers.

The incident at the Melati Hanjalipan plantation has become emblematic of a sweeping, military backed campaign to reclaim land and assets across Indonesia’s palm oil industry  a move that has sparked unease among investors, local operators, and the industry’s massive 16-million-strong workforce.

Officials have described the takeovers as part of a government effort to enforce compliance with land use regulations and recover concessions allegedly obtained through illegal means. However, rights groups and industry leaders warn that the growing involvement of the Indonesian military risks deepening tensions with rural communities and undermining confidence in one of the nation’s most vital export sectors.

Indonesia is the world’s largest producer of palm oil, a commodity crucial to its economy and global supply chains for food, cosmetics, and biofuels. The sudden assertive measures, which have included inspections and seizures of plantations in several provinces, have prompted concerns about transparency and potential political motivations behind the government’s crackdown.

As of this week, the government has not released an official statement regarding the specific reasons for the Melati Hanjalipan takeover. Industry analysts say the situation highlights increasing uncertainty in Indonesia’s palm oil sector at a time when global demand and environmental scrutiny remain high.