JAKARTA (TheInsiderStories) - Palm oil company, PT Salim Ivomas Pratama Tbk (IDX: SIMP) increased its ownership in PT Mentari Subur Abadi (MSA) and has spent Rp806.89 billion (US$58 million) for the transaction. The subsidiary has 13,000 hectares of palm oil plantation areas in South Sumatra and have a facilities for processing Fresh Fruit Bunches.
Yati Salim, the corporate secretary, said in a written statement last week, the unit has issued 806,897 new shares and subscribed by the unit of Indofood Group. After the transaction, the producer ownership in MSA rose from 60 percent to around 80 percent.
Last year, number of listed companies under Salim Group poured out capital expenditures with total amount of Rp14.3 trillion (US$956.22 million). The issuers are PT Indofood Sukses Makmur Tbk (IDX: INDF), PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), Salim Ivomas, and PT PP London Sumatra Indonesia Tbk (IDX: LSIP).
According to the director of Indofood, Taufik Wiraatmadja, the impact of the pandemic was insignificant to the performance of the group. He said, through Salim Ivomas, the group ready to add a new capacity of vegetable oil refineries in Jakarta, margarine factory in Surabaya, East Java, infrastructure facilities, rejuvenating palms, and new plants.
While, the deputy president director of the Salim Ivomas, Paulus Moleonoto, said the company prepared an investment around whit an investment funds Rp1.6 trillion, including for the unit, London Sumatra worth of Rp500 billion. President director of London Sumatra, Benny Tjoeng, said that the company’ estimated to absorbs the investment funds up to Rp500 billion to maintenance and rejuvenation of immature plants in East Kalimantan.
The plan is the factory to have a production capacity of 45 tons of fresh fruit bunches per hour. He explained that the new planting activity has reached around 700 hectares, while replanting for fruit trees such as cocoa, tea and rubber is around 1,000 hectares.
As of June 2020, the core planted area of London Sumatera was 115,236 hectares, with around 82 percent of the total nucleus planted land being oil palm or around 95,045 hectares. Of that amount, consists of 85,629 hectares of mature oil palms and 9,416 hectares that are immature.
As of September 2020, the group’ production fell 10 percent to 2.1 million tones of palm oil compared to a year ago. The crude palm oil (CPO) production also fell 14 percent to 520,000 tones. The sales volume also fell 16 percent to 518,000 tones of CPO and palm kernel dropped 19 percent to 123,000 tones.
In nine months, Salim Ivomas‘ sales rose 2 percent to Rp10.31 trillion from 2019 worth of Rp10.09 trillion due to the higher average selling price of CPO and vegetable oil & fats products. But the net profit decreased from Rp470 billion to Rp173 billion in the same period.
Earlier, owner of the Group, Anthony Salim, stated, the company will maintain growth momentum by capturing various opportunities. Now the conglomeration firms eyes various expansion in global market, especially in South America, East Euripe and Africa.
US$1: Rp14,000
Written by Editorial Staff, Email: theinsiderstories@gmail.com
