Indonesia Tightens Grip on Resources With Switzerland-Sized Land Grab

More than 4 million hectares have been seized as President Prabowo Subianto cracks down on malfeasance in the commodities sector.

A palm oil plantation in Central Kalimantan, Indonesia.

Photographer: Muhammad Fadli/Bloomberg

It started in earnest in March, with a swath of palm-oil estates seized from a tycoon caught up in corruption allegations. Nine months later, a drive overseen by Indonesia’s defense minister has brought an area the size of Switzerland under state control.

The campaign, outwardly a push to improve governance, is a show of force by President Prabowo Subianto, an ex-general who has regularly railed against both Indonesian elites and foreigners for profiting off the country’s resource riches at the expense of the nation. Already, the central government has taken more than 4 million hectares (roughly 10 million acres) of plantations, mine concessions and processing facilities — and much of that land has been handed to a state-owned firm newly tasked with managing seized estates.