PTPN III's Cooking Oil Factory Operates in May 2018

`As of November 24, the factory development has reached 54 percent completion,” said PTPN III Holding Perkebunan Nusantara’s Corporate Secretary, Furqan Tanzala, in a press release on Tuesday (28/11/2017). PT INL will also sell stearin and palm fatty acid distillate (PFAD) to PT Unilever Oleochemical Indonesia and PT Unilever Trading Indonesia. Both prospective buyers signed a memorandum of understanding (MoU) with INL one day prior. The investment is valued at Rp 750 billion in the factory, which is a joint venture between PTPN III and PTPN IV, with share ownership of 51 percent and 49 percent respectively. The processing facility is built on 2,000 hectares of land, with a planned production capacity of 600,000 tons per year and a requirement for 2,000 tons of CPO per day. The supply of raw materials will come from PTPN III and IV, at 1,000 tons each. The Director of Human Capital Management and General Affairs of PTPN III, Seger Budiarjo, stated that the presence of the cooking oil factory has the potential to affect the sales of the company’s palm oil abroad. Over the first ten months of this year, the company produced 1.9 million tons of CPO and CPKO. All of this palm oil will be sold through PT Kharisma Pemasaran Bersama Nusantara (KPBN), a subsidiary of PTPN III, at an auction price of Rp 8,200 per kilogram. The vegetable oil is then marketed to processing factories and exported. “It won’t be an issue, because later we will get added value for the cooking oil,” he said. The company is still reviewing whether the cooking oil will have its own brand or it will be sold to other parties. Besides the subsidiary with Unilever, PTPN III signed an MoU with several other BUMN and private companies. The 14 PTPN holdings signed a cooperation agreement for the distribution of natural gas with PT Pertagas, a sales and purchase of gas agreement with Pertagas Niaga, a cooperation agreement for the use of dry ports with PT Kereta Api Logistik (Kalog), and a land use agreement with PT Alternatif Protein Indonesia. PTPN III also signed an MoU with PT All Cosmos Indonesia as a prospective investor in the construction of a bio fertilizer factory. “We hope that the signing of the agreement and the MoU will increasingly accelerate the development of investment and infrastructure in the Sei Mangkei KEK (industrial estate),” said Furqan. Realization of investment in infrastructure and industrial development in the Sei Mangkei KEK has now reached Rp 3.99 trillion. The Tingkat Penggunaan Lahan (occupation rate) in the KEK is 212 hectares, or 10.96 percent of the total KEK area, at 1,933.8 hectares. Furqan explained that PT Alternatif Protein Indonesia (PT API) requires 51 hectares of land to develop alternative protein industries and black soldier flies (BSF) to build insect bio reactors (IBR) valued at US$ 500 million. API plans a groundbreaking in January 2018. “They have already paid the first down payment for land compensation of 51 hectares on November 23 for Rp 1.3 billion and will pay the rest in full in the next four months,” he explained Meanwhile, PT All Cosmos Indonesia requires 7 hectares of land, with an estimated investment of US$ 30 million. All Cosmos will develop the fertilizer industry (biochemical fertilizer). They plan to hold a groundbreaking in February 2018. “PTPN III, as the Agency for the Development and Management of the Sei Mangkei Special Economic Zone, is committed to continuing to complete infrastructure facilities within the industrial zone and to providing the best service for businesspeople or tenants,” said Furqan. Source: http://industri.bisnis.com