PALMOILMAGAZINE, JAKARTA — PT Salim Ivomas Pratama Tbk. (SIMP), a subsidiary of the Salim Group engaged in the palm oil plantation sector, has issued an official clarification to the Indonesia Stock Exchange (IDX) following recent media reports alleging the company’s ownership of plantation land within forest areas without proper permits.
In a public disclosure signed by SIMP Corporate Secretary, Meyke Ayuningrum, on Friday (October 10, 2025), the company responded to the IDX letter No. S-11652/BEI.PP2/10-2025-SIMP dated October 9, 2025. The exchange had requested clarification regarding a news article titled “Corporations Converting Forests into Palm Oil Plantations to Be Sanctioned Soon—Here’s the Fine”, published on October 6, 2025.
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In its official statement, SIMP emphasized that all productive plantation lands owned and managed by the company are legally permitted in accordance with government regulations. The company reaffirmed that all plantation activities are conducted on legal land, and that SIMP continues to align its operations with ongoing spatial planning adjustments and forestry regulations.
“The company has submitted applications for additional permits in line with the mechanisms set out under the Job Creation Law (UUCK) and its implementing regulations,” stated the management in the disclosure, as quoted by Palmoilmagazine.com from Bisnis on Monday (October 13, 2025). SIMP added that the permit application process is being monitored and reviewed periodically.
As of now, SIMP clarified that it has not received any official notification, billing, or administrative sanctions from government agencies related to the issue. Consequently, the company cannot yet estimate the potential fines or material impact on its financial statements.
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“The company remains fully committed to following all necessary procedures to ensure that land ownership and usage comply with prevailing regulations,” the statement continued. SIMP also affirmed that, should any fines be imposed, the company will comply and resolve them in accordance with government procedures.
In addition, SIMP stated that it continues to identify, evaluate, and strengthen its internal systems and procedures to ensure full compliance across its operational activities. The company confirmed there is no undisclosed material information that could affect business continuity or share performance. (P2)
