New Indonesian forest laws affect Goodhope Asia plantations

Carson Cumberbatch and Bukit Darah yesterday said several subsidiaries of their Singapore-based arm, Goodhope Asia Holdings Ltd, have been affected by Indonesia’s latest land management regulations, which aim to repossess the forest-status lands from the private plantation companies.
The Indonesian government’s newly formed Presidential Task Force has begun implementing the regulation, which so far has impacted about 587 companies in the palm oil plantation sector, covering nearly 1.5 million hectares across the country.
“Based on these new regulations, approximately 5,877 hectares of planted area and 6,275 hectares of unplanted area pertaining to five subsidiaries of Goodhope Asia Holdings Ltd are impacted,” the entities shared in a joint disclosure.
The task force has subsequently transferred the repossessed lands to a newly established state-owned enterprise, PT Agrinas Palma Nusantara (PT ASN). PT ASN is presently engaged in discussions with the group companies of Goodhope Asia Holdings Ltd regarding the potential arrangements for the management of the plantations on these lands. At present, there are no prohibitions on plantation activities within these areas.
The company emphasised that plantation activities within these areas have not been halted and that it has not received any notice or demand for penalties from Indonesian authorities.
“At this stage, the group is not in a position to determine or reasonably estimate the potential financial impact due to any possible penalties,” the disclosure stated.
The disclosure shared that Goodhope has reaffirmed its commitment to full compliance with the prevailing Indonesian regulations and said it continues to engage constructively with the authorities to ensure operational continuity and safeguard stakeholder interests.