Further to our announcement released on 25 September 2026 concerning the administrative fine imposed on our Indonesian subsidiary, PT Sarana Prima Multi Niaga ("PT SPMN"), we wish to provide the following clarification.
The administrative fine of IDR184.347 billion (approximately RM42 million) relates to an aggregate area of 1,228.89 hectares located outside PT SPMN's HGU area.
Of this area, 496.69 hectares had been planted prior to the Group's acquisition of PT SPMN, while 732.20 hectares were planted by local communities (Masyarakat). As these areas are outside PT SPMN's HGU, they are not included in the Group's reported planted area.
On 16 September 2026, PT SPMN executed the letter of statement acknowledging the administrative fine to facilitate the negotiation for the instalment plan pending further clarification and subsequent appeal. As per the statement, the administrative fine is payable in four monthly instalments commencing on 25 September 2026 for IDR46.3 billion (approximately RM10.5 million), following by three further instalments of IDR 46.0 billion (approximately RM10.5 million) each, payable by 25 October 2026, 25 November 2026 and 25 December 2026 respectively. The administrative fine will be recognised in the Group's Q3 2026 financial statements. Apart from this, there is no other material impact on the financial position and operations of the Group.
As the affected land is outside PT SPMN's HGU and is not included in the Group's reported planted area, there will be no reduction in the Group's reported planted hectarage. The Group also does not presently expect any impairment of its plantation assets arising from these areas.
Separately, the only remaining matter involving the Satuan Tugas Penertiban Kawasan Hutan of Indonesia ("Satgas") for which the Group is awaiting final clarification relates to 61.09 hectares at PT Teguh Swakarsa Sejahtera ("PT TSS"), which are planted outside its HGU area.
Based on the Group's current information, apart from the PT TSS matter above, the Group is not aware of any other outstanding matters involving Satgas.
The Group will make the appropriate disclosure should there be any material development in relation to the PT TSS matter.
This announcement is dated 28 September 2026.