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Plantation Review
Palm& Rubber
Overview
The Plantation Division engages principally in the cultivation of oil
palms and derives its revenue primarily from the sale of crude palm
oil (CPO), palm kernel (PK) and related by-products. As a diversifed
business, we also cultivate sugar cane, rubber and other crops.
As at 31 December 2012, our estates comprised approximately
268,725 hectares of planted crops. Oil palm, our dominant crop,
occupies 230,919 hectares or 86% of total planted area, followed
by 21,802 hectares of rubber and 12,333 hectares of sugar cane
estate. We also manage approximately 83,000 hectares of oil palm
estate under the government’s plasma programme
The Division has an annual processing capacity of 4.9 million
tonnes of FFB spread across its twenty one palm oil mills in Sumatra
and Kalimantan. We also operate four crumb rubber processing
facilities, three sheet rubber processing facilities, two sugar mills
and refneries, a cocoa factory and a tea factory.
Our position as one of Indonesia’s largest palm oil seed producers
is supported by continued research. In 2012, the Division produced
28.6 million premium seeds through the advanced seed breeding
programmes and cultivation techniques put in place to improve the
quality and output of our oil palm estates. Our advanced research
and development facilities are located in Bah Lias, North Sumatra
(SumBio) and Pekanbaru, Riau (PT SAIN).
In alignment with the Group’s objective of sustainable low-cost
production, this Division’s primary aim is to maximise yield per
hectare and reduce costs through best agronomy and crop protection
practices. This is achieved through the following initiatives:
• Conducting detailed block-by-block analyses to provide our
estates with the best recommendations on crop management
and planting densities, fertiliser and herbicide usage, as well
as predictions on yields and oil extraction rates.
• Creating optimal crop management and harvesting practices
to maximise production and collection of FFB.
• Optimising biological methods to improve pest and palm tree
disease control.
• Pursuing mechanisation at our plantations to increase effciency
and reduce costs.
• Fully exploiting the use of organic fertilisers and all by-products
while reducing reliance on inorganic fertilisers.
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