KUALA LUMPUR (Nov 21): After two years, property developer Maxim Global Bhd (KL:MAXIM) has decided not to pursue further action against the revocation of plantation concession licences issued by Indonesia's Ministry of Environment and Forestry in January 2022 in relation to assets owned by its 90%-owned subsidiaries — PT Trimegah Karya Utama (PT TKU) and PT Manunggal Sukses Mandiri (PT MSM) — in Papua, Indonesia.

This follows the decision on Oct 2 this year by the Indonesia Investment Coordinating Board to revoke the concession licences held by PT TKU and PT MSM despite their appeal since 2022 and the related litigation against the Boven Digoel Regency in Papua in relation to the revocation.

Additionally, no outcome was received from the president of Indonesia to reconsider the revocation of the concession licences.

"The group has after an in-depth review decided not to pursue further on this matter," said Maxim in a filing with Bursa Malaysia on Thursday.

It said the decision will not have any impact on the group's core operational business of property development and construction or have any material financial implication to the group as the group has fully impaired its assets in Indonesia.  

In February 2022, Maxim announced that both PT TKU and PT MSM had received a letter on the revocation of the concession licence issued by the Indonesian authorities in relation to their assets in Papua. The two companies were part of 192 firms that received the revocation.

Maxim shares closed up 0.5 sen or 1.54% at 33 sen on Thursday, giving it a market capitalisation of RM242.6 million. The stock has fallen 13.16% so far this year.