Date: February 2023

Surya Darmadi, a well-known figure in Indonesia's palm oil industry, was handed a 15-year prison sentence and ordered to repay an equivalent of $2.7 billion for his role in deforesting thousands of hectares of land in Sumatra, one of the Sunda Islands of western Indonesia. Following an appeal from Mr. Darmadi, the Supreme court, which is the highest court of appeals in Indonesia upheld the earlier court sentence and added one year to the total time in prison for a total of 16 years. However, the total fine payable to the state has been decreased to $144 million from $.2.7 billion ordered to pay by the lower court. He was found guilty of bribing officials to enable the conversion of over 36,420 hectares of forests into palm plantations—an area half the size of New York City.

Darmadi’s prosecution was pivotal in an industry where corruption is prevalent. When handing out the sentence, the judge stated, “Corruption is an extraordinary crime, and we need to set an example for others”.

According to civil society organizations based in Sumatra, the palm industry in Indonesia is rarely held to account. A report released by Greenpeace Indonesia in 2021 indicates that palm oil plantations have become the primary driver of deforestation in Indonesia in the past twenty years, surpassing all other factors.

In both 2014 and 2022, Darmadi faced accusations by Indonesia's Corruption Eradication Commission (KPK) of bribing public officials to secure forestry amendments and to favor his plantation activities.