PT Triputra Agro Persada Tbk (IDX: TAPG) plans to build two new palm oil mills, one palm kernel oil factory, and biogas plant - Photo by the Company

JAKARTA (TheInsiderStories) – The new listed company, PT Triputra Agro Persada Tbk (IDX: TAPG) plans to build two new palm oil mills, one palm kernel oil factory, and biogas plant with total costs Rp88 billion (US$6.02 million), said the management yesterday. The factory construct by its subsidiary, PT Sukses Karya Mandiri, located in Central and East Kalimantan and start to ground in the second quarter of 2021 and is planned to be completed in 2022.

As reported, the the company owned by Rahmat and Subianto family and backed by Singapore’ GIC and Northstar Group, has won Rp173.2 billion  from the initial public offering (IPO) in April. The spokesman, Joni Tjeng, explained to finances the projects, the company prepared capital expenditure up to Rp140 billion and mostly injected to PT Agro Multi Persada, the parent of Sukses Karya Mandiri.

During the IPO, Triputra Agro, released a total of 866.2 million shares with an offering price of Rp200 a unit. The plantation firm was founded in 2005 and to date has operated in 24 oil palm plantation locations, one rubber plantation, 15 palm oil mills, one RSS factory and four subsidiaries located in Jambi and Kalimantan.

The palm oil producer is one of several business entities in the Triputra Group made by TP Rachmat, former president director of PT Astra International Tbk (IDX: ASII). Another company in the agribusiness sector owned by him is PT Kirana Megatara Tbk (IDX: KMTR).

Triputra Agro is a company engaged in the oil palm, rubber and processing industries. As of nine months of 2020, the manufacturer has production volume around 1.8 million tones, crude palm oil around 582,247 tones of CPO, and palm kernel around 121,114 tones. The producer has total oil palm and rubber land concessions 300 thousand hectares, of which 120 thousand hectares have been planted.

Recently, the Indonesian Palm Oil Association (GAPKI) sees that around 37 million tones (MT) of CPO would be exported in 2021. In 2020, the palm oil producers is estimating to export around 24.92 MT of CPO, an 18 percent decline compared to last year, as main export markets such as European Union, China and India are impacted by the diseases.

While, senior minister for economic affairs, Airlangga Hartarto, predicted Indonesia’ palm oil price will touched $668 a MT of CPO in 2021 from the current price around $650 per MT of CPO. After suffered by the COVID-19 pandemic, the demand of the palm oil is expected to recover.

The rising in CPO prices was also supported by the continuation of the biodiesel policy has implemented by the government through the mandatory biodiesel 30 used program. To support the growth, he said, the government has issued various policies and will provide funds for the replanting program that has been launched in North Sumatra, Riau and South Sumatra by President Joko Widodo.

US$1: Rp14,600

Written by Editorial Staff, Email: theinsiderstories@gmail.com