Genting Plantations’ Indonesian unit fined RM95mil by forest task force

Genting Plantations’ Indonesian unit fined RM95mil by forest task force

Company does not give details of the alleged breach, but says its 95%-owned indirect subsidiary, PT Susantri Permai, has since paid the penalty.

Genting Plantations, a subsidiary of Genting Berhad, owns about 64,300ha in Malaysia and 178,900ha in Indonesia.
PETALING JAYA:
Genting Plantations Bhd said today its Indonesian unit has been slapped with a fine of 396 billion rupiah (about RM95 million) by Indonesia’s Forest Area Enforcement Task Force.

The plantation group said its 95%-owned indirect subsidiary, PT Susantri Permai, received an interim notice from the task force and has paid the fine.

“The interim notice is awaiting finalisation from the authority,” Genting Plantations said in a bourse filing today.

The company did not provide details of the alleged breach, nor the size of any plantation involved in the enforcement action.

Genting Plantations, a subsidiary of Genting Bhd, owns about 64,300ha in Malaysia and roughly 178,900ha in Indonesia.

The group operates seven palm oil mills in Malaysia and six in Indonesia, with a combined milling capacity of 725 tonnes per hour.

Last year, the Indonesian task force, consisting of the military, the police and state prosecutors, seized around 4.1 million hectares of land allegedly used for illegal plantations and mining inside forest areas, far exceeding its initial one million‑hectare target.

The enforcement campaign is set to expand this year, with authorities planning to seize an additional four million to five million hectares of palm oil plantations.

On Thursday, Indonesia’s military-backed forestry task force threatened legal action against dozens of plantation and mining companies refusing to pay hefty fines for illegal operations in forests.

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