KUALA LUMPUR (Sept 25): Plantation company TSH Resources Bhd (KL:TSH) said on Friday that its 90%-owned indirect Indonesian subsidiary, PT Sarana Prima Multi Niaga, has been fined 184.35 billion rupiah (about RM42 million) by Indonesia’s Forest Area Enforcement Task Force (FAC).
In a bourse filing on Friday, the group did not disclose the reason for the fine
It said PT Sarana Prima has executed a letter of statement acknowledging an administrative fine imposed by the forest task force, with the subsidiary expected to make payment in four installments, with the first being made on Friday.
However, the group did not detail the schedule of payments or whether it will be in four equal tranches.
The Indonesian government set up the FAC last year to tighten oversight of forests, and curb state revenue losses and environmental destruction.
In January, the Indonesian unit of Genting Plantations Bhd (KL:GENP) was slapped with a 396 billion rupiah (RM96.6 million) fine by FAC.
TSH Resources business is focused on the oil palm plantation and palm oil processing sectors, with extensive operations in Sabah, Malaysia, and Kalimantan, Indonesia.
It also has downstream operations through a palm oil refining joint venture with Wilmar International and manufactures engineered hardwood flooring.
For the financial year ended June 30, 2026, the group’s net profit rose 6.7% to RM52.51 million from RM49.23 million thanks to better extraction rates, lower costs and stronger joint-venture contributions.
The stronger earnings came despite revenue slipping 6.6% to RM250.98 million from RM268.78 million amid lower sales volume and softer average selling prices for crude palm oil.
TSH shares closed six sen or 4.2% lower at RM1.37 on Friday, valuing the group at RM1.76 billion.