Indonesia’s Land Crackdown Dents Genting Plantations’ Profits

Indonesia’s drive to fine resource companies over alleged misuse of lands cut into Genting Plantations Bhd.’s earnings in the latest quarter, with the Malaysian-listed planter forking over about $25 million to a task force that is reshaping the palm sector in the world’s biggest producer of the edible oil.

Genting disclosed in a stock filing late Tuesday that the payment of what it described as an administrative fine by a 95%-owned Indonesian subsidiary dramatically reduced fourth-quarter net profit. It didn’t elaborate on the nature of the fine — which it had disclosed last month — but said it was paid to Indonesia’s Forest Area Enforcement Task Force.