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Fima CORPORATION Berhad
(197401004110) (21185-P) •
Annual Report 2020
38
Estate Operations
Indonesia
The Group’s Indonesian subsidiary, PT
Nunukan Jaya Lestari’s (“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
and Malaysia) 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 of 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 upward trend, recording a
y-o-y increase to 7,813 MT from 1,310 MT.
Ladang Cendana, Kemaman, Terengganu
Ladang Cendana’s FFB production increased
four-fold y-o-y to 4,111 MT (FYE2019: 1,147
MT). The increase in FFB production is in
tandemwith 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 3 nearby localities,
facilitated the establishment of a task force
with a view to find workable solutions for
managing conflict with elephants which
include among others, monitoring elephant
movements and providing wildlife corridors
on a more coordinated basis. All these
factors have been and will continue to
be taken into account when planning the
estate’s land usage to ensure that incidences
of crop-raiding and damage are minimised
to the extent possible.
Fruits transported to mills within 24 hours
Our Value Chain
Plantations Fresh Fruit Bunches (“FFB”) are harvested
plantation Division : taking root