The palm oil plantation and industry have been become the Company’s main business in the recent years. The palm oil business segmen has contributed the Company’s revenue of more than 70% of the total revenue.
The Company engaged in palm oil business due to the rapid development of the palm oil industry and its derivative products following the increasing demand of global vegetable oil. The Company took the opportunities and success to develop its business and becoming one of the leading companies in the palm oil industry.
Oil palms only grow in the tropics. Today, 85% of the world’s palm oil is produced in Indonesia and Malaysia. Oil palms are grown on both large-scale plantations and small-scale family farms. Palm oil is used in a wide range of products, from margarine and chocolate to ice cream, soaps, cosmetics, and fuel for cars and power plants.
Palm oil with their natural preservaties that helps in extending food shelf life is one of the main reason you can find palm oil used in almost all types of food products found on supermarket shelves. Palm oil have no smell, their smooth and creamy texture and their ability to maintain their properties despite high temperature made it a perfect ingredients for both baking and cooking.
We start with the knowledge that our resources are finite and that people matter, that we cannot continue to conduct our business in the traditional linear model. Therefore sustainability is an integral part of how we conduct our operations and we subscribe to these key tenets of sustainability practise.
We develop modern plantation management systems to meet the Company’s standards and develop environmental friendly plantations that meet with the national and international standards, by achieving RSPO and ISPO certificates to prove the commitment and consistency of management and all the Company’s employees to continue growing sustainably.
In addition to the plantations, the company owned ten palm oil mills (POM) with a total production capacity of 570 tons/ hour. The company also has a palm kernel plant that turns Palm Kernel into Palm Kernel Oil (PKO) with a capacity of 300 tons/day or 90,000 tons/year.
In the palm oil industry, we produced Crude Palm Oil (CPO), Palm Kernel (PK) and Palm Kernel Oil (PKO).
We managed our first palm plantation in Muara Wahau, East Kalimantan. We have 15 plantations mostly located in East Kalimantan and other in Central Kalimantan and West Kalimantan. More than 60.000 hectares of our planted in East Kalimantan laid in one contiguous block.
In 2002, we ran our first palm oil mills, with the second mill operating in 2010, the third in 2011, and the fourth and the fifth mills in 2012. As of the end of 2019, we are operating 10 palm oil mills with the capacity of 570 tons/hour.
We also have 1 Kernel Crusher Plant with production capacity of 300 tons/day or 90,000 tons/year.
Our commitments to sustainability practices are reflected in its certified sustainable products. In palm oil segment, 58% of our CPO is RSPO certified, 84% is ISPO certified and 11% is ISCC certified.
Until 2019, there have been 8 mills and 7 plantations that have received ISPO certificates
Another certification that has been followed is ISCC, in which 1 mill and 3 plantations have received ISCC certificates
We comply with laws and regulations regarding proper environmental management organized by the Ministry of Environment and Forestry.