JAKARTA (TheInsiderStories) – State run holding company, PT Perkebunan Nusantara III (PTPN 3) allocated a capital expenditure Rp6.7 trillion (US$472.83 million) in this year, the management announced last week. This funding mainly came from the government injection through the national economic recovery fund plus internal cash flow.
Currently, the agriculture ministry has transferred state property worth of Rp6 trillion to PT Riset Perkebunan Nusantara, the uni of the company. As part of the restructuring, at the end of January, the CEO, Mohammad Abdul Ghani, has signed a debt restructuring worth of Rp45.3 trillion with PT Bank Mandiri Tbk (IDX: BMRI), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT BRI Agroniaga Tbk (IDX: AGRO), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Central Asia Tbk (IDX: BBCA), and Indonesia Eximbank).
Ghani revealed that the business transformation that was being carried out had begun to show positive achievements. The crude palm oil (CPO) production rose to 2.38 million tones (MT) of CPO, rubber increased by 159,000 tones, and tea rose by 54.7,000 tones. He explained, from the financial side, the revenue grew 11.6 percent to Rp39.6 trillion in annual basis but still booked a net loss.
For the next five years, said Ghani, the target is that PTPN 3 can double its cultivation area. Ghani also said that the company will expand the land for the sugar industry by converting part of its rubber plantations in Java. The holding company also plans to supply 1 MT of empty bunches of CPO to power producer, PT Perusahaan Listrik Negara for a biomass co-firing program.
Currently the electricity firm is carrying out co-firing trials at 26 steam power plants in Indonesia as an effort to encourage an increase in the capacity of new and renewable energy generators to 16 gigawatt by 2024. Co-Firing is the process of adding biomass as a partial replacement fuel or coal mixture at the power plant. Seven of them have successfully operated, namely, Paiton, Ciranjang, Ketapang, Sanggau, Pacitan, Suralaya and Anggrek.
PTPN 3 is a plantation company with more than 1.2 million hectares of land where six commodities are cultivated, namely oil palm, sugar cane, rubber, tea, cocoa and coffee.
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