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") as well as palm kernels ("PK") at our 18,205-hectare ("Ha") plantation in East Kalimantan, Indonesia.


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


A summary of the FFB produced, purchased and processed; as well as the CPO produced and PK extracted together with the oil extraction rate ("OER") and kernel extraction rate ("KER") for the financial year ended ("FYE") 30 September 2019 to 30 September 2023 is shown as follows:

Input for our palm oil mill (i.e. FFB) for the production of CPO and extraction of PK
FFB harvested in our plantation estates
- PT MKH 429,181 433,413 417,780 362,904 388,006
- PT SPS 22,047 28,772 21,941 19,848 22,224
FFB purchased under Plasma Programme 17,723 20,599 20,175 22,210 23,051
Total FFB processed 467,669 482,889 459,940(1) 404,901(1) 433,011
Output from our palm oil mill (i.e. CPO and PK)
CPO produced 99,722 100,010 89,438 74,942 89,017
OER (%) 21.3 20.7 19.4(2) 18.5(2) 20.6(3)
PK extracted 18,899 20,331 17,963 16,245 16,886
KER (%) 4.0 4.2 3.9(2) 4.0(2) 3.9(3)


(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.