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
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 years ended ("FYE") from 30 September 2020 to 30 September 2024 is shown as follows:
| FYE 2020 |
FYE 2021 |
FYE 2022 |
FYE 2023 |
FYE 2024 |
|
|---|---|---|---|---|---|
| MT | |||||
| 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 | 433,413 | 417,780 | 362,904 | 388,006 | 377,789 |
| - PT SPS | 28,772 | 21,941 | 19,848 | 22,224 | 28,869 |
| FFB purchased under Plasma Programme | 20,599 | 20,175 | 22,210 | 23,051 | 25,460 |
| Total FFB processed | 482,889 | 459,940(1) | 404,901(1) | 433,011 | 431,757 |
| Output from our palm oil mill (i.e. CPO and PK) | |||||
| CPO produced | 100,010 | 89,438 | 74,942 | 89,017 | 91,635 |
| OER (%) | 20.7 | 19.4(2) | 18.5(2) | 20.6(3) | 21.2 |
| PK extracted | 20,331 | 17,963 | 16,245 | 16,886 | 17,609 |
| KER (%) | 4.2 | 3.9(2) | 4.0(2) | 3.9(3) | 4.1 |
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.