KUALA LUMPUR (Aug 9): TDM Bhd’s 93.75%-owned Indonesian subsidiary has lost a legal battle to the Ministry of Environment and Forestry of Indonesia in relation to a fire incident in 2019 at its land in the West Kalimantan province.
 
Its subsidiary, PT Rafi Kamajaya Abadi, which TDM is in the midst of divesting its entire interest in, has been ordered by Court of Sintang to pay a compensation of IDR270.81 billion (about RM81.24 million) for the environmental loss to the National Account of Indonesia. 

The subsidiary is also ordered to rehabilitate the environment on the affected area due to the fire incident of 2,560ha and to reactivate the affected ecology system with the cost of IDR646.22 billion (approximately RM193.86 million), TDM said in a stock exchange filing on Tuesday (Aug 9).

TDM also said the Court rejected Rafi Kamajaya Abadi’s counterclaims against the Ministry of Environment and Forestry of Indonesia.  

Rafi Kamajaya Abadi’s legal counsel will be filing an appeal against these decisions, said TDM. 

“The Company is analysing its potential financial and operational impact against Rafi Kamajaya Abadi, the Company and the group,” it said.

According to TDM’s latest annual report, Rafi Kamajaya Abadi had on Dec 27 last year received lawsuit claims from the Ministry of Environment and Forestry of Indonesia for the alleged violation against the laws and regulations related to a fire incident that occurred in the unit’s plantation in 2019. 

The total claims filed by the ministry back then amounted to IDR1.001 trillion (RM293.67 million). 

Shares of TDM closed unchanged at 22.5 sen per share on Tuesday, giving it a market capitalisation of RM387.65 million.