32 / 232
The detailed analysis of the results
for the year is presented on pages
32 to 36 of this Annual Report.
In August 2018, we announced
that Mahkamah Agung Republik
Indonesia, the country’s apex court,
has allowed our subsidiary PT
Nunukan Jaya Lestari’s (“PTNJL”)
appeal and ruled that the
Ministerial Order revoking PTNJL’s
Hak Guna Usaha be annulled.
Accordingly, the reversal of
impairment loss of RM23.63 million
referred to above were recognised
during the year.
Subsequently in February 2019,
we had also announced that the
defendant, i.e. the Menteri Agraria
dan Tata Ruang/Kepala Badan
Pertahanan Nasional Republik
Indonesia had filed an application
and memorandum to the court
seeking judicial review of the
Mahkamah Agung’s decision; on
grounds that the court had among
others misapplied the law to the
relevant facts in arriving at the
decision. In response, PTNJL filed
its counter-memorandum on 18
March 2019. Our Indonesian solicitors
have advised that based on normal
timelines for judicial review, we
could expect the decision to be
was also given to improve yields
and agronomic standards of our
estates and establishing permanent
and comfortable housing for estate
workers. On a separate note, I am
happy to report that all our estates
have been recommended to receive
the Malaysian Sustainability Palm
Oil accreditations.
Meanwhile, our bulking division has
commenced construction of new
tanks at their terminal in Port Klang
that will increase the terminal’s
storage capacity for edible oils.
The expansion has several value-
added benefits and is in line with the
Group’s growth strategy as it not
only optimizes the terminal’s land
usage but also expands the division’s
product offerings and help grow
market share over the long term.
Meanwhile, our
bulking division
has commenced
construction of new
tanks
at their terminal
in Port Klang that will
increase the terminal’s
storage capacity for
edible oils.
made in six to twelve months from
the date the counter-memorandum
was filed. Commencement of the
judicial review proceedings does not
however, prevent the implementation
of the Mahkamah Agung’s written
decision as aforesaid.
An important focus area during
FYE2019 for our plantation
division has been the planting
and development of the Group’s
greenfield assets, currently at
different stages of development,
following acquisitions made
by the Group in prior years.
Regrettably, there had been several
more incidences of elephant
encroachments at our estates
resulting in damage to quite a
number of our young palms which
have to be replaced and this in turn
will cause delays before the new
palms can be harvested. Attention
Kumpulan Fima Berhad
(11817-V)
Annual Report 2019
28