First Resources Pays $5.6 Million in Indonesia Land Crackdown

Palm oil producer First Resources Ltd. paid $5.6 million in connection with land it was required to hand to the Indonesian government, the latest sign of how commodities companies are being affected by a sweeping crackdown that’s brought vast areas under state control.

The Singapore-based plantation company paid the “administrative charges” in relation to land handed over to the government, it said Friday in its full-year financial results. There could be further charges for land that has been identified by Indonesia’s forestry task force but not yet transfered, the report said.