178 / 188
174
NOTES TO THE FINANCIAL STATEMENTS
F I N A N C I A L S TAT E M E N T S
38. MATERIAL LITIGATION
(i)
Hak Guna Usaha No. 01/Nunukan Utara
On 23 August 2016, the Company’s subsidiary, PT Nunukan Jaya Lestari (“PTNJL”), received an order (“Ministerial
Order”) issued by the Menteri Agraria dan Tata Ruang/Kepala Badan Pertanahan Nasional (“Defendant”) dated 25 July
2016 to revoke PTNJL’s land title Hak Guna Usaha (“HGU”) for the cultivation of oil palm in Kalimantan Utara with
immediate effect.
The Ministerial Order was on the basis that the HGU was improperly issued due to administrative irregularities performed
by certain officers of the Badan Pertanahan Nasional Provinsi Kalimantan Timur at the time of the issuance of the HGU
in 2003, resulting in parts of the area within the HGU to overlap with forestry areas.
On 21 October 2016, PTNJL filed an application in the Pengadilan Tata Usaha (“PTUN”) in Jakarta, Indonesia seeking
an order to annul the Ministerial Order. Simultaneously, in the said application, PTNJL has also sought an order from
PTUN to postpone the enforcement of the Ministerial Order pending full and final determination of the matter by the
Indonesian courts.
On 13 June 2017, the State Administrative Court delivered an oral judgment and dismissed the application filed PTNJL
to annul the Ministerial Order. On 21 June 2017, PTNJL had filed an application to the Court of Appeal to appeal against
the decision of the State Administrative Court.
The Pengadilan Tinggi Tata Usaha Negara Jakarta vide its written decision dated 11 December 2017:
-
has partly allowed PTNJL’s appeal against the State Administrative Court’s decision, with costs;
-
has declared that the Ministerial Order revoking PTNJL’s HGU to be void, save for the areas overlapping with
forestry areas/third party interests measuring 5,138 hectares; and
-
has ordered the Defendant to revoke the Ministerial Order save for the areas overlapping with forestry areas/third
party interests measuring 5,138 hectares.
On 10 January 2018, PTNJL has filed its statement of appeal to the Mahkamah Agung Republik Indonesia and
subsequently on 23 January 2018, PTNJL filed its appeal to the Mahkamah Agung Republik Indonesia in respect of the
aforesaid decision.
Notwithstanding the Ministerial Order, the local government in Kabupaten Nunukan, in the interest of good order,
has given its undertaking and allowed PTNJL to continue to lawfully operate its plantation operations until the final
determination of the matter by the Indonesian courts.
The assets affected by the Ministerial Order had been impaired, resulting in gross impairment loss totalling RM44,735,000
in prior year.
39. AUTHORISATION OF FINANCIAL STATEMENTS FOR ISSUE
The financial statements for the year ended 31 March 2018 were authorised for issue in accordance with a resolution of the
directors on 30 May 2018.