First Resources sells Indonesia units, exits oil palm plantation business in West Papua

The units are former subsidiaries of an Indonesia-listed company under First Resources

Palm oil producer First Resources has disposed of two subsidiaries in Indonesia as it exits the oil palm plantation business in the country’s West Papua province.

Following the sale of Permata Putera Mandiri (PPM) and Putera Manunggal Perkasa (PMP) for total cash proceeds of around 405.6 million rupiah (S$31,455), the two have ceased to be subsidiaries of First Resources, the company said on Thursday (Oct 2).

Prior to the disposals, PPM and PMP were indirect subsidiaries of Austindo Nusantara Jaya – a company listed on the Indonesian Stock Exchange that First Resources acquired earlier this year.

The disposals follow the completion of First Resources’ acquisition of Austindo Nusantara Jaya and its decision to streamline its plantation footprint by exiting the oil palm plantation business in West Papua, the company said.

Both PPM and PMP are engaged in the oil palm plantation business in West Papua. Their assets include some 7,400 hectares of nucleus oil palm plantations, a crude palm oil mill and an unplanted land bank.

First Resources said that it is in the process of determining the fair value of the identifiable assets and liabilities of Austindo Nusantara Jaya, as well as that of its subsidiaries, for purchase price allocation purposes.

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The company noted that the sale consideration was determined with reference to independent appraisal reports, which took into account the existing assets and liabilities of PPM and PMP on an as-is basis. This included net financial indebtedness of around 1,312 billion rupiah or US$80.1 million as at Jul 31, 2025.

Based on its current assessment, the net asset values of PPM and PMP are not expected to be materially different from the sale consideration, First Resources said.

Accordingly, the disposals are not expected to have any material impact on the company’s consolidated net tangible assets and earnings per share for the current financial year ending Dec 31, 2025.

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Its counter ended Thursday at S$1.71, up 0.6 per cent or S$0.01, before the news.