Group Overview Operation and Financial Review Financials Other Information Sustainability and Governance 127 Annual Report 2025 Notes to the financial statements For the financial year ended 31 December 2025 22. Other non-current assets (cont’d) Amount due from a subsidiary The Company has extended a credit facility of Rp165.0 billion to a subsidiary. The amount of Rp31.0 billion is repayable in July 2028 while the remaining balance of Rp134.0 billion is repayable in November 2029. These facilities are non-trade related, unsecured and bears interest at long-term commercial lending rates. The amounts due from this subsidiary is to be settled in cash on the respective due dates. Loans to employees The Group provides non-interest bearing loans to officers and employees subject to certain terms and criteria. Such loans, which are being collected through monthly salary deductions over five years from the date of the loan, are carried at amortised cost using effective interest method, with discount rate of 5.67% to 7.92% (2024: 7.00% to 8.24%) per annum. Advances and deposits Advances and deposits mainly relate to utility and rental deposits, advance payments for land and payments made to suppliers and contractors in relation to the purchases of capital equipment and services. Forestry administrative charges under appeal Regulations governing the plantation sector in Indonesia, where the Group operates, continue to evolve and may be amended periodically at both national and regional levels. These changes include updates to spatial planning rules and the designation of forest areas. The Group actively monitors these regulatory developments and carries out the necessary clarification and verification procedures to ascertain the legal status of its lands, in accordance with the relevant land related laws in Indonesia. On 1 December 2025, Indonesia’s Ministry of Forestry imposed forestry administrative charges on the Group amounting to Rp2,337.5 billion, pursuant to government regulations issued relating to forest area governance and compliance requirements. These charges were fully paid within the required timeframe, on 30 December 2025, into an escrow account administered by the Forest Area Enforcement Task Force (Satuan Tugas Penertiban Kawasan Hutan or “Satgas PKH”), which was established by the Indonesian authorities to implement and enforce these new regulations. Following the receipt of the administrative charges, the Group submitted the necessary objection papers to Satgas PKH. The Group is pending Satgas PKH’s decision as of the date of this report. This amount of Rp2,337.5 billion under appeal has been recognised as Forestry administrative charges under appeal under Other non-current assets in the balance sheet as at 31 December 2025.
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