Key insights and market outlook
The Indonesian government received Rp 6.6 trillion in fines from 20 companies violating forest area regulations 1
The Indonesian government has received a substantial Rp 6.6 trillion (approximately USD 440 million) in fines and penalties from 20 companies found guilty of misusing forest areas 1
President Prabowo announced that the recovered funds will be allocated towards critical national development projects. The primary plans include constructing 100,000 permanent housing units for victims of recent floods in Sumatra and Aceh, as well as repairing 6,000 schools across the country 1
The funds were recovered through the efforts of the Forest and Mining Area Enforcement Task Force, established by President Prabowo on January 21, 2025 4
Attorney General ST Burhanuddin revealed that the task force is projecting even larger recoveries for 2026, with potential receipts exceeding Rp 100 trillion from administrative fines related to palm oil and mining operations within protected forest areas 5
Finance Minister Purbaya Yudhi Sadewa stated that the received Rp 6.6 trillion will help reduce the national budget deficit, which was approaching 3% of GDP 6
Rp 6.6 Trask Rp 6.6 Trillion
Potential Rp 100 Trillion 2026 Receipts
Forest Area Violation Penalties