Jakarta, SAWIT INDONESIA - First Resources Ltd, listed on the Singapore Exchange (SGX), has addressed the impact of the Indonesian government’s 2025 nationwide initiative to harmonize regional spatial planning with national forest zoning maps. The synchronization process has led to the reclassification of certain licensed plantation areas into designated forest zones.
Under the regulatory framework, companies affected by these spatial shifts are required to undergo administrative resolutions. These measures include the payment of compliance fees or, in specific cases, the handover of land back to the state.
In its financial report for the year ended 31 December 2025, First Resources confirmed receipt of notifications from the Forest Area Control Task Force (Satgas PKH). In compliance with these directives, the Group has recognized a US.2 million write-off relating to the impairment of bearer plants on identified land areas.
Furthermore, the Group disclosed that it has paid US.6 million in administrative charges associated with the land areas that have already been handed over to the government. The Group incurred a total financial hit of US.8 million due to this regulatory enforcement—consisting of a non-cash loss (the plants) and a direct cash payment (the charges).
While the Group anticipates that additional administrative charges may be payable for remaining land areas cited in the notification, the exact financial liability cannot be reliably determined at this stage. The process remains subject to ongoing verification and administrative resolution with the relevant Indonesian authorities.
Despite these adjustments, First Resources maintained a positive outlook regarding its balance sheet. “Based on information currently available, we do not expect this ongoing process to have a material impact on the Group’s financial position,” said Lai Kuan Loong Company Secretary in the company stated.
The management emphasized that they will continue to monitor the situation closely and remain committed to keeping shareholders updated on any significant developments regarding the spatial harmonization process.
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Original source: Responses to Questions Received for The AGM 2026
