The firm says 2% of its land has been seized by the Indonesian task force, amounting to around 2,800 ha
Published Thu, Jun 11, 2026 · 03:58 PM
[KUALA LUMPUR] Malaysia’s SD Guthrie is working with the Indonesian government on the issue of land seizures, affecting some of its palm oil plantations, its chief executive Mohd Haris Mohd Arshad said on Thursday (Jun 11).
Indonesia launched a task force in 2025, consisting of the military, the police and state prosecutors, to crack down on violations in the palm oil industry.
The task force seized around 4.1 million hectares (ha) of plantations in 2025 for operating illegally in forest areas, a move that affected both major palm oil companies and smallholder farmers.
SD Guthrie is one of the world’s largest palm oil producers, and about a third of its total land bank is located in Indonesia. The company has said that 2 per cent of its land has been seized by the task force, amounting to around 2,800 ha.
The company has not been issued any decree from the Indonesian government related to its plantations, and is still harvesting as usual in the country, Mohd Haris told a press conference.
He also said Indonesia’s plan to bring its top commodities exports under the control of a state agency was understandable, as the country aimed to curb revenue leakages.
SD Guthrie was not implicated in such concerns and remains one of the largest taxpayers in Indonesia, Mohd Haris said.
He said the company was not too worried by high fertiliser costs arising from a supply crunch caused by the Middle East conflict, as it procures its own supplies from China, Canada, Belarus and Egypt.
The company would also improve water management to cope with any potential dry weather spells due to El Nino weather conditions this year, Mohd Haris added. REUTERS
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