Indonesian Political, Business & Finance News

IPB Professor at Duta Palma Trial: Palm Oil Cultivation in Forest Areas is Legally Prohibited

| | Source: KOMPAS Translated from Indonesian | Legal
IPB Professor at Duta Palma Trial: Palm Oil Cultivation in Forest Areas is Legally Prohibited
Image: KOMPAS

JAKARTA - A Professor from Bogor Agricultural Institute (IPB) and environmental expert, Bambang Hero Saharjo, has emphasised that palm oil must not be planted in forest areas because it is not classified as a forestry crop.

Bambang made this statement while providing expert testimony in the trial of the alleged corruption and money laundering (TPPU) case involving the Duta Palma Group corporate entity at the Central Jakarta District Court on Friday (8/5/2026).

“Palm oil is an agricultural crop, not a forestry one. Therefore, it is legally prohibited to plant it in forest areas because that is not its place,” Bambang said before the panel of judges on Friday afternoon.

Bambang stressed that the existence of plantation business permits (IUP) or land use rights (HGU) cannot be justified if the forest area has not been released from its forest status to become non-forest land.

“It is strange to us that there is no change of function, yet there are IUP or HGU permits. How is that possible? That is an absolute requirement,” he stated.

He said that based on field verification and reconstruction using satellite imagery, several companies have systematically planted palm oil in forest areas.

Bambang also conveyed that the losses arising from palm oil plantation activities in forest areas amount to Rp 73.9 trillion.

This figure was obtained through calculations using satellite image analysis, field verification, and laboratory testing in accordance with Minister of Environment Regulation Number 7 of 2014.

He emphasised that the methods used are scientifically accountable.

“We calculated using detailed satellite imagery. So we even know their movements every year,” Bambang said.

Quoted from Antara, PT Duta Palma Group is accused of causing state financial losses of Rp 4.79 trillion and USD 7.88 million related to the alleged corruption and money laundering (TPPU) case in palm oil plantation business activities in Indragiri Hulu Regency, Riau, from 2004 to 2022.

Public Prosecutor (JPU) from the Attorney General’s Office (Kejagung), Bertinus Haryadi Nugroho, revealed that the state losses were caused by unlawful acts in the form of corruption and TPPU committed by Duta Palma Group, which includes PT Palma Satu, PT Seberida Subur, PT Banyu Bening Utama, PT Panca Agro Lestari, PT Kencana Amal Tani, PT Darmex Plantations, and PT Asset Pacific.

The TPPU was carried out by transferring money from the proceeds of corruption to PT Darmex Plantations as the holding company for plantations in Riau owned by Surya Darmadi.

From those fund transfers, the companies then purchased various assets or at least controlled assets in the name of companies or individuals, including ownership of funds sourced from the proceeds of corruption placed at PT Darmex Plantations, PT Asset Pacific, and other affiliated companies as well as individuals, to disguise the origin of the criminal proceeds.

In addition to state financial losses, the JPU stated that the case also caused economic losses to the state amounting to Rp 73.92 trillion, consisting of household and business losses.

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