SEO Version
review 2012
IndoAgri is a vertically integrated agribusiness group with activities
spanning the entire supply chain from R&D, seed breeding, oil palm
cultivation and milling; as well as the production and marketing of
cooking oil, shortening and margarine. As a diversified agribusiness
group, IndoAgri also engages in the cultivation of sugar cane,
rubber and other crops.
IndoAgri’s headquarters are located in Singapore and we are listed
on the Singapore Exchange (SGX). IndoAgri has a 72% stake in
PT SIMP and a 59.5% stake in PT Lonsum. Collectively with our
subsidiaries, IndoAgri’s plantations covered 268,725 hectares,
with an additional 83,010 hectares of oil palm estates that are
managed by smallholders under the plasma scheme. As of 31
December 2012, all our plantations are located in Indonesia.
financial highlights
Despite a challenging year with softer commodity prices for
plantation crops, IndoAgri reported a consolidated revenue of
Rp13.8 trillion for financial year 2012, a 10% increase over
last year’s Rp12.6 trillion. The improved sales performance was
achieved on the back of higher CPO sales volume and edible oils
products to external parties as well as positive sales contribution
from our sugar operation.
Bottom-line pressure from reduced average selling price of
plantation crops and higher production costs resulted in a dip
of attributable profit by 30% from Rp1.5 trillion to Rp1.0 trillion.
2012 expansion
Several significant changes occurred in 2012. The total planted
area for oil palm, rubber and tea was expanded as part of the
business strategy to ensure sustainable raw material supply for
the processing plant and refinery production. We achieved new
plantings of over 16,002 hectares of oil palm plantations, of which
13,383 hectares were nucleus plantation and 2,619 hectares under
smallholders surrounding the plantation (plasma).
In addition, we completed a new oil palm processing plant in West
Kalimantan, increased the capacity of our sugar mill in Central Java,
and added a margarine factory packing facility in Tanjung Priok.
In May 2012, we acquired a 26.4% stake in Heliae Technology
Holdings Inc. (Heliae), headquartered in Gilbert Arizona, United
States of America. Heliae’s capability in algae technology allowed
IndoAgri to develop advanced algae strains, production technology,
and downstream processing to optimise algae production for a
range of product targets, such as vegetable Omega 3&6 fatty acids.
Scientific evidence shows that dietary Omega 3&6 fatty acids
are beneficial for heart health and brain development. Vegetable
Omega fatty acids can be an excellent subsititute for Omega fatty
acids derived from fish oils, as fish stock becomes depleted from
global overfishing and contamination.
Heliae’s ground-breaking technology can potentially offer the world
a renewable source of vegetable Omega fatty acids to maintain
balanced diet and wellbeing. While this is still under R&D, we
hope that the technique developed by Heliae can be extended to
support sustainable biofuel production.
“FrankMars and I are of onemindondeveloping the solutions to address today’s
issues with soil fertility, freshwater, growingdemand for fish and animal feeds
and ultimately sustainable fuel. We are committed to impacting the world’s
future in a positive way. Both the large impact we see with algae and Heliae’s
comprehensive approach todeveloping algae technology solutions formedour
rationale for this strategic investment.”
v
Anthoni Salim
President Director, PT Indofood Sukses Makmur Tbk
Indofood Agri Resources Ltd.
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