The palm oil plantation sector has been the Company’s main business segment in the past few years. In 2018, the palm oil segment had contributed the revenue of more than 70% of the Company’s 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 for vegetable oil globally. The Company took the opportunity and had been successful, becoming one of the leading companies in the palm oil industry.
Modern plantation management systems continues to be developed to meet the Company’s standards and are environmentally friendly, recognized nationally and internationally, as evidenced by the achievement of RSPO and ISPO certificates proving the commitment and consistency of management and all the Company’s employees to continue growing sustainably.
As of the end of 2018, the Company has a to total plantation more than 108,400 hectares of planted land, consisting of nucleus plantations more than 84,300 hectares and plasma of 24,000 hectares.
The addition of planted area was due to the Company’s acquisition of the plantations PT Bima Palma Nugraha and PT Bima Agri Sawit in December 2018. Both companies are located in East Kalimantan, which is the largest area of the Company’s plantations.
In addition to the plantations, the company owned nine palm oil mills (POM) with a total production capacity of 510 tons/hour. In addition, the company also has a palm kernel plant that turns Palm Kernel into Palm Kernel Oil (PKO) with a capacity of 200 tons/day or 60,000 tons/year.
In the palm oil industry, the products produced are Crude Palm Oil (CPO), Palm Kernel (PK) and Palm Kernel Oil (PKO). CPO is oil produced from the processing of the outer palm oil fruit. Whereas PK is in the inner part of the palm oil fruit. PKO is oil produced from the kernel or palm kernel.