Malaysia’s Genting Plantations pays 396 billion rupiah fine to Indonesia amid Jakarta’s land enforcement crackdown

[JAKARTA] Malaysia’s plantation company Genting Plantations said its indirect subsidiary in Indonesia has received an interim administrative fine of nearly 396 billion rupiah (S$30.2 million) from the Indonesian authorities.

In a filing on Friday (Jan 16), Genting Plantations said Susantri Permai, a 95 per cent-owned indirect subsidiary, received an interim notice from Indonesia’s Forest Area Enforcement Task Force imposing the fine.

The company said Susantri Permai has already made the payment, even though the notice is still awaiting finalisation by the Indonesian authorities. Genting Plantations did not disclose the specific violation cited in the notice.

Intensified audits

The case highlights Indonesia’s stepped-up enforcement drive targeting plantation, mining and other companies suspected of operating inside forest zones or outside their licensed concession boundaries.

Over the past year, the government has intensified audits and investigations under a multi-agency task force, combining officials from forestry, law enforcement and the military to reclaim state forest land and impose penalties on companies deemed non-compliant.

Under Indonesian law, forest areas are strictly regulated, and companies are required to hold valid permits that clearly define concession boundaries.

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Operating beyond those limits – or within forest areas without proper approval – can result in administrative sanctions, including fines, licence revocations or orders to cease operations.

By the end of last year, the campaign led to the seizure of around four million hectares of concessions. The government has also collected 2.34 trillion rupiah in fines from 20 palm oil companies and a nickel mining firm, which were found operating beyond their designated concession areas.