OIL PALM SEEDS
IndoAgri operates two advanced agricultural R&D centres: SumBio in Bah Lias, North Sumatra, and PT SAIN in Pekanbaru, Riau.
They are two of ten oil palm seed breeding centres in Indonesia. In 2013, IndoAgri sold 18 million premium seeds, compared with
25 million seeds in 2012.
RUBBER
The Group’s rubber estates are spread across North and South
Sumatra, East Kalimantan and Sulawesi. As at end 2013, nucleus
rubber estates occupied 21,759 hectares of land, of which 22% are
immature. The average age of our rubber trees is about 14 years.
Sheet rubber, crumb rubber and cup lump remain to be our key
rubber products. The Group’s total rubber production in 2013
was 18,500 tonnes. 84% was exported to countries including
Singapore, the US and UK, while the rest were sold domestically.
SUGAR
In 2008, we diversified into sugar cane cultivation and production
as a key strategy for business expansion. In South Sumatra, we
have a cane-planted acreage of 11,645 hectares, and an 8,000
TCD sugar mill and refinery with an annual processing capacity
of 1.44 million tonnes. In 2013, we harvested 758,000 tonnes of
sugar cane from our own estates, and produced 53,200 tonnes
of sugar.
In Central Java, we have a 4,000 TCD sugar mill and refinery with
an annual capacity of 720,000 tonnes. In 2013, we processed
438,000 tonnes of sugar cane from 5,600 hectares of sugar estates
held by local farmers and a small area of our own estate. Total
sugar production from Central Java was 28,000 tonnes. IndoAgri
has an arrangement with these local smallholders, whose credit for
seed cane, planting costs and fertiliser purchases is offset against
their sales proceeds. The Group’s share of the sugar produced
in 2013 was 9,400 tonnes.
In 2013, we expanded our sugar business overseas. The acquisition
of a 50% stake in CMAA offers access to Brazil’s sugar and ethanol
industry, as well as 42,517 hectares of planted sugar cane in Brazil.
As a Group, we will tap into the technologies and agronomic best
practices from CMAA, and to apply the advanced methodologies
and operational improvements across its plantations in Indonesia.
We also invested a 30% stake in FP Natural Resources Limited
(FPNRL), which has a 34% interest in Roxas Holdings Inc. (RHI),
the largest integrated sugar business in the Philippines.
As sugar has increased significantly in our portfolio, we are
reviewing the most appropriate sustainability standard for our
sugar plantations. In 2014, CMAA will start the process to apply
for the Bonsucro certification for their operations. Bonsucro is a
globally recognised standard, and a multi-stakeholder non-profit
organisation, similar to RSPO. It promotes measureable standards
that balance the environmental and social impacts of sugar cane
production and primary processing with the economic viability
of business operation. In Indonesia, we have been advising and
giving field training to our local sugar farmers on sustainable ways
to improve yield and productivity.
We are currently reviewing the techniques and technology used in
Brazil and the Philippines, before establishing a common set of
sustainability standards and guidelines that will allow us to adopt
the best practices in our Indonesian sugar plantations and by
our supply chains.
EDIBLE OILS AND FATS
IndoAgri’s downstream products include cooking oils, margarine,
shortening, crude coconut oil (CNO) and by-products derived from
oil palm refining, fractionation and crushed copra. The Group
owns and operates 5 advantageously located refineries, with
total processing capacity of 1.4 million tonnes of CPO per year.
Our Bimoli, Bimoli Spesial, Delima, and Happy range of cooking
oils are leading brands in Indonesia. Our consumer margarine
and shortening are marketed under the Palmia and Amanda
brands, while their industrial equivalents are branded under
Palmia, Simas, Amanda, Malinda and Delima.
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Potential Bunch Production (FFB)
31–34 tonnes/ha/yr
30–35 tonnes/ha/yr
Potential Palm Oil Production (CPO)
8.7–9.0 tonnes/ha/yr
8.1–9.3 tonnes/ha/yr
Potential Kernel Oil Production (PKO)
0.4–0.9 tonnes/ha/yr
0.9–1.2 tonnes/ha/yr
Oil Extraction Rate (OER)
26.0–26.5%
27.2–29.6%
Height Increment
63–67 cm/yr
69–80 cm/yr
Planting Density
143 palms/ha
143 palms/ha
Note: PT SAIN uses parent palm materials from ASD Costa Rica and OPRI from Ghana, derived from renowned breeding populations and breeding centres of Southeast Asia and West Africa. Sumbio
uses palm materials from elite Harrisons & Crosfield Del dura and AVROS populations from Dam, Papua New Guinea, and various African breeding populations including Cameroon, Congo,
Ivory Coast, Nigeria and Tanzania.
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