【SMM Nickel Flash News】Indonesia Imposes Rp38.9 Trillion Fines on Palm Oil and Mining Companies for Illegal Forest Use

Indonesia’s Forestry Area Enforcement Task Force (Satgas PKH) has issued Rp38.9 trillion in administrative fines to 71 palm oil and mining companies for illegal forest-area use as of 8 December 2025. The penalties comprise Rp9.42 trillion for 49 palm oil firms and Rp29.2 trillion (1.75 billion) for 22 mining companies.

Among palm oil companies, 33 attended the summons and 15 have paid Rp1.7 trillion to an escrow account. In the mining sector, 13 companies have appeared, one has paid Rp500 billion, while Weda Bay Nickel has filed an objection. According to SMM's understanding, some of the companies in the mining sector should include nickel companies, but the government has not disclosed the list. Satgas PKH has opened dialogue channels for firms submitting formal objections.