PTPN III Targets Increased Production in 2018

President Director of the PTPN III state-owned plantation holding company Dolly P. Pulungan stated that the company's production will be positive, with CPO production increasing from 2.3 million tons last year to 2.7 million tons. Sugar production will increase by 100,000 tons to 800,000 tons.

Rubber is targeted to reach 115,000 tons, tea at 20,000-30,000 tons and for other commodities will increase by an average 5,000 tons.

"Revenue target at IDR 40 trillion in 2018 and net income target at IDR 2.5 trillion," Dolly explained during the working visit of the Minister of State-Owned Enterprises (BUMN) in Ranca Bali, Ciwidey, Saturday (26/5).

According to him, thanks to the Ministry of BUMN's theme towards one vision, one country, and one family, internal synergy has been carried out within PTPN in which rotation of General Managers within the company has taken place in order to increase the experience and performance of state-owned plantation companies.

Not only that, as the BUMN plantation holding company, PTPN III also has the flexibility to disburse funds for PTPN units that are experiencing problems.

For your information, the holding unit's capital expenditure budget is IDR 16 trillion which will be used for plantation production and the construction of a number of new factories for the sugar, rubber, and palm oil sectors.

One of the work plans this year is the realization of a cooking oil factory in Sei Mangkei which he targets to be operational in June and produce up to 500,000 tons of cooking oil.

"Then next year Sei Mangkei's natural gas will also go into production, and we will also be producing olein there," Dolly explained.

He continued, with the entry of the State-Owned Plantation Holding into the cooking oil downstream sector, the government's efforts to control commodity prices and ensure availability of stock will be increasingly easier.

Especially considering the large export potential, Dolly admitted that it is now time for BUMN plantations to start looking at developing the downstream side of all plantation commodity lines.

Responding to the work plan of the state plantation holding, Minister of BUMN Rini Soemarno stated that she would continue to monitor its performance, especially considering PTPN's previous record since 2015 in which a loss was recorded in the current year of IDR 1.08 trillion and in 2016 a loss was recorded in the current year of IDR 1.38 trillion.

It was only in 2017 that the PTPN III Holding managed to achieve a profit of IDR 1.2 trillion. "Prior to the end of 2014, PTPN had many problems, now things are good," Rini said.

Source: https://industri.kontan.co.id/news/ptpn-iii-targetkan-peningkatan-produksi-2018