InfoSAWIT, KUALA LUMPUR – Genting Plantations Bhd disclosed that its unit in Indonesia has been fined 396 billion rupiah (equivalent to RM96.6 million) by Indonesia’s Forest Area Enforcement Task Force. The penalty was imposed over alleged non-compliance in areas designated as forest zones.
As quoted by InfoSAWIT from The Edge Malaysia, Monday (19/1/2026), and based on the company’s disclosure to Bursa Malaysia on Friday (16/1), Genting Plantations said the fined entity was PT Susantri Permai, an indirect subsidiary 95% owned by the group. The company stated it had received an interim notice from authorities and confirmed the fine has been paid.
However, the interim notice is still pending finalization by the authorities.
No Details Disclosed on Alleged Violations
Genting Plantations did not disclose details on the alleged violations that formed the basis of the penalty. The company also did not clarify whether the fine would have a material impact on the group’s financial performance.
The enforcement move comes as Indonesia steps up action against plantation companies operating outside legal requirements within forest zones.
In recent months, Indonesia has tightened supervision over plantation activities located in forest areas. Some confiscated land has since been transferred to the state-owned plantation company Agrinas Palma Nusantara, which has become one of the government’s instruments for restructuring land control and plantation legality.
Reuters previously reported that Indonesia is targeting major fine collections from palm oil and mining companies alleged to have violated forest-zone regulations, in line with the intensified work of the special task force established by the government.
Genting Plantations’ Landbank in Indonesia Reaches 178,900 Hectares
Based on the company’s annual report, Genting Plantations—a unit of Genting Bhd—holds a landbank of around 64,300 hectares in Malaysia and about 178,900 hectares in Indonesia, including plasma schemes.
Operationally, the company runs seven palm oil mills in Malaysia and six in Indonesia, with a combined processing capacity of 725 tons per hour. (T2)
