Agrinas Faces Major Challenge Managing 1.5 Million Hectares of Palm Oil Land

However, around 50% of the planted area is severely damaged, with 30% moderately damaged and only 20% in relatively good condition.

“These conditions require massive normalization efforts, with significant rehabilitation costs,” he explained.

Initial rehabilitation costs are estimated at IDR 1.74 million per hectare, highlighting the scale of financial resources needed.

The land acquisition process has been carried out in stages, involving assets from hundreds of companies across multiple provinces. However, administrative challenges such as land title verification (HGU) remain ongoing.

Despite these challenges, Agrinas remains optimistic about gradually restoring productivity and supporting the sustainability of Indonesia’s palm oil sector.