KUALA LUMPUR (Feb 22): TDM Bhd's Indonesian palm oil unit PT Rafi Kamajaya Abadi (RKA) is facing a charge in relation to a fire incident in 2019 at its land in West Kalimantan province.

In a filing on Tuesday (Feb 22), TDM said that a public prosecutor of the Indonesian state of Sintang has filed a charge against RKA under Article 99(1) — causing environmental damage surpassing standard criteria due to negligence.

It also faces another charge under 116(1) — in the event environmental crime is committed by, for and on behalf of a business entity — which relates to environmental protection and management.

The first mention of the charge was held on Feb 21, 2022, at the Court of Sintang, West Kalimantan, according to TDM.

Under Article 99(1), if convicted, RKA will be subject to imprisonment of not less than one year and not more than three years, as well a fine of not less than one billion rupiah (about RM292,000) and not more than three billion rupiah (about RM875,000).

Pursuant to Article 116(1), the penalty shall be imposed on "the said business entity and/or person ordering the crime or person acting as activity manager in the crime".

"The management is analysing its potential financial and operational impact against RKA, the company and the group.

"As at the date of this announcement (Feb 22), there is no material impact on the operations of RKA and the company," it added.

TDM noted that based on the advice of RKA's lawyers, it said the company has grounds to defend and dismiss the charge. The next mention date of the case has been fixed for March 7.

Shares in TDM closed unchanged at 28 sen, giving it a market capitalisation of RM474.37 million.