Indonesia, the world's top palm oil producer, is pushing greater biodiesel usage to reduce its oil import bill and to create more demand for the tropical oil. (AFP Photo/Adek Berry)

Indofood Agri Resources Mulls Plans for Three New CPO Plants


OCTOBER 02, 2015

Jakarta. Singapore-listed Indofood Agri Resources, the agriculture arm of beverage and food giant Indofood Group, is planning to build up to three new crude palm oil factories next year through its subsidiaries, Salim Ivomas Pratama and London Sumatra, according to top executives at the company.

Johnny Ponto, a director at publicly-listed Salim Ivomas Pratama, said that a majority of the palm fruits grown by Salim Ivomas Pratama are ready to be harvested and converted to crude palm oil in the next few years, which is why Salim Ivomas is planning to build two plants in East Kalimantan next year.

"The factories will support our plantation estates... Hopefully, we can start [construction] by the end of the year or in the beginning of 2016, and complete it in 2017," Johnny said during a press conference in Jakarta on Thursday.

One of the factories will have the capacity to refine 40 tons to 80 tons of palm fruit per hour, he added.

Meanwhile, the second plant will have the capacity to process 40 tons of palm fruit per hour.

Each is expected to cost Rp 200 billion ($13.6 million) in investment.

Its subsidiary, London Sumatra, is also planning to add one CPO plant in East Kalimantan with a capacity to process 60 tons of palm fruit per hour, according to London Sumatra president director Benny Tjoeng.

"We've been planting quite extensively these past few years in East Kalimantan. We hope to expand in the near term," Benny said, declining to disclose the estimated investment value of the plant.

London Sumatra currently has over 113,000 hectares of planted area, mostly in East Kalimantan and South Sumatra, and 11 crude palm oil factories. The company is completing one more factory in South Sumatra, according to Benny.

Meanwhile, Salim Ivomas Pratama currently manages about 245,818 hectares of planted area for palm oil and 24 factories, processing a total of 6.4 million tons of palm fruit per year.