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to more fields attaining maturity i.e. from 822 hectares
last year to 1,648 hectares in FYE2019.
CPO and CPKO production during the year under
review were 47,966 MT and 4,434 MT respectively
(FYE2018: 51,887 MT and 4,013 MT respectively) in line
with the decline in FFB production and lower third
party crop. Average CPKO price was RM3,015 per
MT, compared with RM4,431 per MT in the prior year.
Meanwhile, the Group’s oil extraction rate (“OER”)
average of 22.34% was slightly higher compared to
22.09% OER recorded last year.
On 23 August 2018, we had announced that the
Mahkamah Agung Republik Indonesia, vide its written
decision dated 21 August 2018, has allowed PTNJL’s
appeal and ruled that the Ministerial Order revoking
PTNJL’s HGU be annulled. The Mahkamah Agung
also ordered the Menteri Agraria dan Tata Ruang/
Kepala Badan Pertahanan Nasional Republik Indonesia
(“Defendant”) to simultaneously:
i.
issue an order cancelling PTNJL’s HGU rights over
the areas overlapping with third party interests
measuring 3,500 hectares; and
ii. issue a new HGU certificate in favour of PTNJL for
an area measuring 16,474.130 hectares, (which is
19,974.130 hectares less the 3,500 hectares referred
to in paragraph (i) above).
Arising therefrom, the impairment of property, plant
and equipment previously affected by the Ministerial
Order was reversed in Q2 of FYE2019.
We had also announced in February 2019 that the
Defendant had subsequently made a judicial review
application to set aside the decision. This was followed
by PTNJL filing a counter-memorandum in March 2019
in response thereof. Our Indonesian solicitors have
advised that based on normal timelines for judicial
review, we could expect the decision to be made in
six to twelve months from the date PTNJL’s counter-
memorandum was filed. Further, commencement of
the judicial review proceedings do not prevent the
implementation of the Mahkamah Agung’s written
decision as aforementioned.
During the year, PTNJL commenced construction of a
“terminal khusus” (specific terminal) at the estate. The
terminal which was completed in this current financial
year has locational advantages as it will allow for
more efficient loading and dispatch of PTNJL’s CPO
and CPKO thereby reducing transport costs as well as
PTNJL’s environmental footprint.
indonesia
Estate Operations
performance
review
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