Group Overview Operation and Financial Review Financials Other Information Sustainability and Governance 109 Annual Report 2025 Notes to the financial statements For the financial year ended 31 December 2025 16. Goodwill Group 2025 2024 Rp million Rp million At 1 January/31 December 3,078,520 3,078,520 Goodwill arising from business combination was allocated to the following cash-generating units (“CGU”) for impairment testing: Integrated plantation estates of Lonsum 2,909,757 2,909,757 Plantation estates of PT GS 8,055 8,055 Plantation estates of PT MPI 2,395 2,395 Integrated plantation estates of PT MISP 34,087 34,087 Plantation estates of PT LPI 37,230 37,230 Plantation estates of PT SAL 86,996 86,996 Total 3,078,520 3,078,520 Goodwill was tested for impairment as at 31 October 2025. As at 31 December 2025, there was no significant change in the assumptions used by management that could have significant impact in determining the recoverable value of the goodwill. Management engaged an independent valuer to determine the recoverable amount of the goodwill for Lonsum’s integrated plantation estates. The plantation estates under Lonsum are identified as a single cash-generating unit (“CGU”) for impairment testing. The recoverable amount of the goodwill allocated to the Lonsum CGU have been determined based on value-in-use calculations. The recoverable amount of other goodwill from other acquisitions were determined internally by management based on FVLCD or value-in-use calculations, using discounted cash flow method. The FVLCD derived is categorised under Level 3 of the fair value hierarchy. Based on the impairment assessment, no impairment was recognised for the financial years ended 31 December 2025 and 2024 as the recoverable amounts of goodwill were in excess of their respective carrying values.
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