The Plantation Division manages the plantations, and production and sale of CPO, PK-related products, crumb and sheet rubber, sugar, tea, cocoa and other products, mainly for domestic consumption. The nucleus oil palm estates span 244,337 hectares across Indonesia, of which 10% are immature. The average age of palm trees is 19 years old. FFBs are harvested and processed by 27 mills across our estates, with a total annual capacity of 7.2 million tonnes. The nucleus rubber estates occupy 16,238 hectares in North and South Sumatra and Sulawesi, of which 13% are immature. The average age of rubber trees is 18 years old. Rubber is processed by three crumb rubber and two sheet rubber facilities. Oil palm and rubber plasma partnership was 90,867 hectares. The sugar estates in Indonesia occupy 13,384 hectares. Harvested cane is processed at an 8,000 tonnes of cane per day (TCD) sugar mill and refinery in South Sumatra, and a 4,000 TCD sugar mill and refinery in Central Java. The Division also operates 19,470 hectares of other crops with one factory each for the production of tea and cocoa. 2023 REVIEW The Plantation Division recorded a flattish FFB nucleus production. This, coupled with lower purchases of FFB fromexternal parties, led to a 4% decline in CPO production. The Plantation Division’s revenue declined by 7% mainly due to lower palm selling prices, which partly offset by higher sales volume of palm products. Despite higher sales volume from the realisation of the previous year’s CPO stock and tight cost-control measures, this Division reported lower operating profit of Rp1,372 billion in 2023 compared to Rp2,092 billion in 2022. FFB Production (Nucleus) (in ’000 tonnes) Oil Palm Age Profile (Nucleus) Total Planted Area: 244,337 hectares Average Age: 19 years CPO Production (in ’000 tonnes) 2023 2022 2021 708 736 687 2023 2022 2021 2,784 2,812 2,761 >20 years 7-20 years 4-6 years Immature 35% 10% 3% 52% 17 Annual Report 2023 GROUP OVERVIEW OPERATION AND FINANCIAL REVIEW SUSTAINABILITY & GOVERNANCE FINANCIALS OTHER INFORMATION
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