SSEK Legal Consultants has assisted TSH Resources Berhad, one of the largest Malaysia-based oil palm plantation groups, with the disposal of land covering more than 13,000 hectares in North Kalimantan, Indonesia, for a total of approximately IDR 2.42 trillion or US$162 million, as has been reported.
The land will be used for the development of the International Port and Industrial Estate (Kawasan Industri dan Pelabuhan Internasional or KIPI) to support Indonesia’s new capital, Nusantara. This KIPI area is said to be the largest green industrial area in the world, covering approximately 30,000 hectares in total, with an investment value of up to IDR 1,848 trillion or approximately US$118.5 billion. This transaction will provide almost half the total area to be developed for this green industrial area.
TSH said the land disposal was in line with its strategy of evaluating its portfolio of investments and seeking opportunities to realize the value of its investments for the benefit of shareholders.
SSEK’s work included advising on various issues related to the land acquisition and plantations, and assisting with drafting/reviewing and negotiating the transaction documents, including the Conditional Sale, Purchase and Compensation of Land Agreement, the Land Sale and Purchase Deeds, the Land Relinquishment Deeds, and land acquisition supporting documents. SSEK also assisted TSH and its Malaysian counsel with the submission of the required disclosure to the Malaysia Stock Exchange (Bursa Malaysia).
SSEK partner Denny Rahmansyah, the supervising partner of the firm's land and property practice, led the SSEK team advising on the transaction. He was assisted by SSEK associates Raisya Majory and Putri Miqaila Ameena.