KUALA LUMPUR (Jan 16): Genting Plantations Bhd (KL:GENP) said on Friday its Indonesian unit has been fined 396 billion rupiah (RM96.6 million) by Indonesia’s Forest Area Enforcement Task Force for alleged non-compliance in forest-designated areas.
The Malaysian plantation group said its 95%-owned indirect subsidiary, PT Susantri Permai, had received an interim notice from the task force and has since paid the fine. The notice is pending finalisation by the authority, Genting Plantations said in a filing with Bursa Malaysia on Friday.
The group did not disclose details of the alleged breach, nor did it say whether the penalty would have a material impact on its financial performance.
Indonesia has stepped up enforcement against plantation companies operating illegally in forest-designated zones, with significant portions of seized land being transferred to state-owned plantation firm Agrinas Palma Nusantara.
Genting Plantations, a unit of Genting Bhd (KL:GENTING), has a landbank of about 64,300ha in Malaysia and around 178,900ha in Indonesia, including plasma schemes, according to its annual report. It operates seven palm oil mills in Malaysia and six in Indonesia, with a combined milling capacity of 725 tonnes per hour.
Shares in Genting Plantations were up 0.4% at RM5.16 at midday break on Friday, giving the group a market capitalisation of RM4.63 billion. The stock has fallen 9.31% over the past year.