Indonesia to crack down on illegal exploitation of resources, president says

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JAKARTA (Reuters) -Indonesia will launch a broader crackdown on the illegal exploitation of natural resources after a survey of palm plantations found that 3.7 million hectares (14,300 square miles) had broken the law, President Prabowo Subianto said on Friday.

He added that a total of 5 million hectares of palm plantations have been under scrutiny.

He made the comments in his first state of the nation speech, delivered as the country - the world's largest producer and exporter of palm oil - celebrates 80 years of independence this weekend. Prabowo won the election last year, and took power in October.

Prabowo, speaking in parliament, said the government had already seized 3.1 million hectares of illegal plantations with the help of the military.

"We have used the military to accompany the teams that took over the plantations because there often is resistance," he said.

He said his government is also planning a crackdown on mining, adding that they had received reports of as many as 1,063 illegal operations throughout the vast, mineral-rich archipelago. He did not specify what type of mines or the commodities they were extracting.

Prabowo added that the government would take action against businesses found to be hoarding and exploiting key commodities in Indonesia.

Large-scale rice mills would also be forced to obtain government permits to ensure rice quality and affordability, he said.

(Reporting by Jakarta bureau; Writing by Gibran Peshimam; Editing by David Stanway)

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