Indonesia has seized 5 million hectares of land from palm oil and mining companies, revoking permits for alleged environmental violations in what critics call an arbitrary crackdown by President Prabowo Subianto. Since March 2023, authorities have penalized over 100 companies and confiscated operations in forest areas, with another 4-5 million hectares potentially targeted this year.

Green groups have welcomed the environmental enforcement but criticized the transfer of seized assets to state-owned enterprises. Prabowo's government claims the crackdown targets corruption and protects forests, but businesses argue it's a veiled nationalization effort. The government has already revoked permits for 28 companies operating on more than 1 million hectares, citing flood risks.

Investors are alarmed by the unprecedented scale, particularly as Indonesia dominates global palm oil, nickel, and thermal coal exports. Analysts suggest revenue recovery rather than environmental protection drives the campaign, pointing to Indonesia's opaque state-owned company governance. The crackdown has impacted major players including Jardine Matheson, Eramet, and Tsingshan, with some operations transferred to Agrinas, now the world's largest palm oil company by land size.