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Indonesia has seized approximately 85,000 hectares of land from Sugar Group Companies, a major private sugar producer, claiming it legally belongs to the government. This action has raised concerns regarding palm oil supply and increased global palm oil prices, as Indonesia is the largest palm oil producer.

The takeover is part of a broader initiative to reclaim plantations deemed illegal. Minister of Agrarian Affairs Nusron Wahid announced the cancellation of all permits related to the land, which includes sugarcane fields and a factory, returning it to the Defence Ministry under the control of the Indonesian Air Force.

Historical audits from 2015, 2019, and 2022 confirmed the land's ownership by the Defence Ministry. The Air Force plans to develop the area into a military training facility. Since early last year, a military-led task force has reclaimed about 8,800 hectares from mining and seized around 4.1 million hectares of palm oil plantations.