Page 25 - ar2013

Taking a step towards diversification, the Group acquired a 79.7%
interest in MPM for Rp330 billion through its subsidiaries, PT
SIMP and Lonsum. MPM owns the SAL Group, which holds three
industrial forest plantation concessions totalling 73,330 hectares
in Berau and East Kutai, East Kalimantan.
Palm
As at 31 December 2013, the Division’s South Sumatra and
Kalimantan estates achieved 9,791 hectares of nucleus oil palm
new plantings, compared to 13,383 hectares in 2012. Mature
estates covered 177,099 hectares versus 176,105 hectares in
2012, while immature estates which will boost CPO production
and volume growth when they become productive in the next few
years, occupied 62,823 hectares or 26% of total planted palm
area. The average age of our oil palms is about 12 years.
With lower nucleus production and plasma purchases, FFB
production decreased by 8% from last year’s 4,107,000 tonnes
to 3,761,000 tonnes in 2013. Correspondingly, CPO production
declined by 8% from 880,000 tonnes in 2012 to 810,000 tonnes
in 2013. Oil extraction rates increased slightly to 22.1% versus
21.7% in 2012, while internal CPO sales to the Edible Oils & Fats
Division reduced by 7% to 510,000 tonnes from 548,000 tonnes
in 2012 as the purchase of external CPO from Kalimantan estates
lowered transportation costs.
In total, IndoAgri’s certified CPO production of 248,000 tonnes
(roughly 31% of 2013’s total CPO output) is comparable to 2012
− a reflection of the continued commitment towards sustainable
agriculture.
239,921 Ha 150,076 Ha 89,845 Ha
23%
42%
9%
26% 32%
17%
9%
9%
28% 64%
10%
31%
Group SIMP Lonsum
> 20 years > 7-20 years > 4-6 years > Immature
Oil Palm Plantation Age Profile
Soy Oil Premium Over CPO
CPO (CIF Rotterdam)
Soy Oil (CIF Rotterdam)
CPO vs Soy Oil Price
US$ / tonne
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Jan ’06Jun ’06Nov ’06Apr ’07Sep ’07Feb ’08Jul ’08Dec ’08May ’09Oct ’09Mar ’10Aug ’10Jan ’11Jun ’11Nov ’11Apr ’12Sep ’12Feb ’13Jul ’13Dec ’13
21 INDOFOOD AGRI RESOURCES LTD • ANNUAL REPORT 2013