Thousands protest against state takeover of palm oil plantations in Indonesia

JAKARTA, Nov 20 (Reuters): Thousands of residents in Indonesia's Riau province palm oil belt protested on Thursday against the takeover of their plantations by the government's forestry task force, an organiser told Reuters.

President Prabowo Subianto's forestry task force, which includes military personnel and state prosecutors, has this year launched a crackdown on palm oil plantations they say have been running illegally in forest areas, an operation that the palm oil industry says could disrupt global supplies.

Around 3.7 million hectares (9.1 million acres) of plantations have been seized, with nearly half transferred to the nascent state-run firm Agrinas Palma Nusantara, transforming it into the world's largest palm oil company by land size.

At a rally near the local prosecutor's office in the provincial capital of Pekanbaru, around 2,800 protesters called on the task force and Agrinas to halt all their operations in Riau and explain the legal basis of the takeover, said Abdul Aziz, secretary general of KOMMARI, a coalition of Riau residents. "Our hope is they first make sure who has the right to the lands. They can't just seize lands that we have cultivated for years, for decades. This should be taken to the court," Aziz said in a phone interview.

Agrinas' vice chief executive Kusdi Sastro Kidjan said the task force's operations were based on existing laws, intended to take back control of forest areas and stop illegal planting of palm oil.

Agrinas will continue its activity in Riau and other provinces across the country while maintaining good corporate governance standards, he said.

The task force did not immediately respond to Reuters' request for comment.

Indonesia is the world's biggest producer of palm oil, while Riau is the country's top province when it comes to total plantations.