TSH Resources Bhd has clarified that the IDR184.35 billion (approximately RM42 million) administrative fine imposed on its 90%-owned Indonesian subsidiary, PT Sarana Prima Multi Niaga (PT SPMN), relates to 1,228.89 hectares of land located outside the subsidiary’s HGU concession area.
The planter said 496.69 hectares of the affected land had been planted before the group acquired PT SPMN, while another 732.20 hectares were planted by local communities.
As the areas are outside PT SPMN’s HGU, they are not included in the group’s reported planted hectarage.
TSH said PT SPMN signed a letter on Sept 16 acknowledging the fine to facilitate negotiations on an instalment plan while further clarification and a subsequent appeal are being pursued.
The first instalment of IDR46.3 billion, or about RM10.5 million, was due on Sept 25, followed by three instalments of IDR46.0 billion each, also about RM10.5 million, due on Oct 25, Nov 25 and Dec 25, 2026.
The group said the administrative fine will be recognised in its third-quarter 2026 financial statements.
Apart from the accounting impact of the fine, TSH said it does not expect any other material effect on the group’s financial position or operations.
It added that there will be no reduction in reported planted hectarage and that it does not currently expect any impairment of plantation assets arising from the affected areas.
Separately, TSH said the only remaining matter involving Indonesia’s Forest Area Enforcement Task Force, or Satgas, relates to 61.09 hectares at PT Teguh Swakarsa Sejahtera, which are also planted outside its HGU area.
The group said it is awaiting final clarification on that matter and is not aware of any other outstanding issues involving Satgas.
