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At the mill, FFB are sterilized and pressed to extract oil
Organic Fertiliser Compost
Crude oil is then shipped to the refineries
Estate Operations
Indonesia
The Group’s Indonesian subsidiary,
PTNJL FFB production declined to
148,637 MT compared to last year’s
164,770 MT. Purchases of third-party crops
also declined to 40,257 MT from 49,902
MT registered last year. The decrease of
FFB production experienced by PTNJL
was in tandemwith the general industry
trend (both in Indonesia andMalaysia)
as growers were impacted by low crop
production patterns, culminating in a
decline in yield per mature hectare from
25.98 MT last year to 23.58 MT in FYE2020.
On 27 November 2019, we had
announced that the judicial review
application by the Menteri Agraria
dan BPN against PTNJL, was allowed
by the Mahkamah Agung vide its
written decision which was received
by PTNJL’s solicitors on 27 November
2019 (“the Decision”). Subsequently
on 28 November 2019, PTNJL filed
a civil suit in the Pengadilan Negeri
Jakarta Selatan against BPN and PT
Adindo Hutani Lestari. The President
Republik Indonesia and Menteri
Lingkungan Hidup dan Kehutanan
Republik Indonesia been named as
co-defendants in the said suit. PTNJL
is seeking legal recognition of its rights
over land title Hak Guna Usaha No. 01/
Nunukan Barat (“HGU”) and to restrain
the local authorities from issuing
any new licences or approvals to any
parties on or within the HGU. PTNJL is
also seeking an order from the court to
stay the enforcement of the Ministerial
Order dated 25 July 2016 pending full
and final determination of the matter
by the Indonesian courts.
On 23 January 2020 we also had
announced that PTNJL had filed
an application at the Jakarta State
Administrative Court (or Pengadilan
Tata Usaha Negara Jakarta) for judicial
review and reversal of the Decision.
The suits are still ongoing at the time
of writing.
Malaysia
FFB production from our Malaysian
estates continued their favourable
uptrend, recording a y-o-y increase of
45.5% from 34,140 MT achieved last
year to 49,686 MT.
Ladang Cendana,
Kemaman, Terengganu
Ladang Cendana’s FFB production
increased four-fold y-o-y to 4,111 MT
(FYE2019: 1,147MT). The increase in
FFB production is in tandem with the
increase in the estate’s mature area
from 117 hectares to 491 hectares.
The resultant effect of road upgrades,
drain desilting works at low-lying areas
and adoption of agricultural protocols
which in turn led to more efficient crop
evacuation, had also contributed to the
increase in FFB production.
1,295 palms had been damaged by
crop-raiding elephants during the year.
To tackle this issue, the estate together
with 8 other estates from nearby
localities facilitated the establishment
of a task force aimed at finding
workable solutions for managing
conflicts with elephants which include,
among others, monitoring elephant
movements and restoring wildlife
corridors on a more coordinated basis.
Plantation Division : Taking Root
kumpulan Fima Berhad
(197201000167)(11817-V)
Annual Report 2020
39