Plantation
OIL PALM
We Ventured Into
Oil Palm Plantation
In 2008
Established in 2008, this division is the youngest addition to our business portfolio that has since evolved into one of the main contributors to the Group’s earnings.
Comprising mainly two oil palm estates, namely PT Maju Kalimantan Hadapan ("PT MKH") and PT Sawit Prima Sakti ("PT SPS"), we produce and sell quality ISPO-certified crude palm oil ("CPO"), crude palm kernel oil ("CPKO") and palm kernels ("PK") at our 18,205-hectare ("Ha") plantation in East Kalimantan, Indonesia.
DATA & ANALYSIS
Our Plantation Readings
Hectares Planted/ In Harvest/ Unplanted Area
| Plantation Area | PT MKH | PT SPS |
|---|---|---|
| Planted (Ha) | 15,012 | 1,997 |
| In Harvest (Ha) | 15,012 | 1,997 |
| Unplanted Area (Ha) (e.g. palm oil mill, management office, housing, nursery, roads, drains, canals) |
930 | 266 |
| Total Land Area (Ha) | 15,942.3 | 2,262.7 |
5-YEAR FFB PRODUCTION RECORD
The table below summarises the fresh fruit bunches ("FFB") that were produced, purchased, and processed; the total production of CPO and CPKO; and the oil extraction rate ("OER"), kernel extraction rate ("KER"), and CPKO extraction rate ("CPKOER") for the financial years ended 30 September 2021 to 30 September 2025.
| FYE 2021 |
FYE 2022 |
FYE 2023 |
FYE 2024 |
FYE 2025 |
|
|---|---|---|---|---|---|
| Input for our CPO mill consists of FFB for the production of CPO, CPKO and extraction of PK | |||||
| FFB harvested in our plantation estates | |||||
| - PT MKH (mt) | 417,780 | 362,904 | 388,006 | 377,789 | 363,724 |
| - PT SPS (mt) | 21,941 | 19,848 | 22,224 | 28,869 | 21,994 |
| FFB purchased under Plasma Programme | 20,175 | 22,210 | 23,051 | 25,460 | 29,493 |
| Total FFB processed (mt) | 459,940(1) | 404,901(1) | 433,011 | 431,757 | 415,991 |
| Output from our CPO mill consists of CPO, PK, and CPKO. | |||||
| CPO produced (mt) | 89,438 | 74,942 | 89,017 | 91,635 | 85,975 |
| OER (%) | 19.4(2) | 18.5(2) | 20.6(3) | 21.2 | 20.7 |
| PK extracted (mt) | 17,963 | 16,245 | 16,886 | 17,609 | 17,033 |
| KER (%) | 3.9(2) | 4.0(2) | 3.9(3) | 4.1 | 4.1 |
| CPKO produced (mt) (4) | - | - | - | - | 5,218 |
| CPKOER (%)(5) | - | - | - | - | 43.9 |
Notes:
(1) Lower FFB processed in FYE 2021 and FYE 2022 was due to lower FFB harvested from our plantation estates as a result of heavy rainfall from La Nina weather phenomenon in FYE 2021 and 2022.
(2) Lower OER and KER in FYE 2021 and FYE 2022 were due to higher moisture content in FFB harvested as a result of heavy rainfall from La Nina weather phenomenon in FYE 2021 and 2022.
(3) Higher OER in FYE 2023 was due to lower moisture content in FFB harvested as a result of decreased rainfall in the second half of year 2023, whereas lower KER in FYE 2023 was due to shrinking of FFB fruitlet size caused by the earlier La Nina weather phenomenon. For avoidance of doubt, FFB fruitlet size is generally affected by weather condition, whereby prolonged La Nina weather phenomenon generally leads to shrinking of FFB fruitlet size. However, as the La Nina weather phenomenon improved with decreased rainfall in FYE 2023, the moisture content in FFB fruitlets decreased, hence leading to greater amount of oil extracted from FFB harvested and recording higher OER in FYE 2023 despite the shrinking of FFB fruitlet size. On the contrary, in FYE 2023, the size of the kernels remained relatively unchanged as the development of FFB fruitlets generally takes place approximately 9 to 10 months before harvesting.
(4) The PK crushing facility commenced its first operation in November 2024.
(5) The CPKO extraction rate is calculated based on the percentage of CPKO extracted from the processed PK.