Palm | Kelapa Sawit

Overview
The company first entered the oil palm business in 1993 when 6,200ha of its rubber estate in Kisaran were converted to oil palm. Since then, the group has continued to expand its oil palm business, through both greenfield developments and acquisitions.

As at 1 Jan 2008, oil palm plantations represented around 80% of the group’s total planted area. Most of its estates are located on the island of Sumatra, but the company has recently started a greenfield project in Central Kalimantan.

Production
The fruits (FFB) harvested from the estates are processed daily into Crude Palm Oil at the group’s mills. The group currently has eight mills under its management, including two mills owned by its 25% associate ARBV. This gives BSP the installed capacity to process 390 tonnes of FFB per hour, which is adequate for its current FFB output. However, plans are already in place to build new mills to support current young estates when they reach their peak production.


Products

CPO
Palm oil is a dark yellow to yellow-red oil (due to its high carotene content) obtained by pressing or boiling the flesh of the fruit of the oil palm.

PK
Palm kernel (PK) is obtained after the oil content of the fruitlets has been extracted. The kernel is further crushed to obtain the palm kernel oil which is white to yellowish in colour. It normally solidifies at room temperatures and is often used in the oleochemicals industry.

Milestones
Year Milestone

1911
Originally established as NV Hollandsch Amerikansse Plantage Matschappij a rubber plantation company.


1986
Acquired by Bakrie & Brother and renamed as United Sumatera Plantations.

1990
Listed on JSX & SSX.
Diversified into palm oil by establishing a subsidiary, PT BPP In Pasaman.


1991
Renamed PT Bakrie Sumatera Plantations.
Acquired an oil palm plantation company, PT Agrowiyana in Jambi.

1996
Certified as an ISO 9002:1994 company.
Developed a palm oil mill in Pasaman.
Acquired a palm oil refinery, PT Kilang Vecolina in karawang.

Closed $75 million Credit Facility (CSFB,HSBC).



2003
Updated the ISO 9002:1994 into ISO 9001:2000.

2004
Stock Split and Rights Issue.
Acquired a rubber plantation company, PT Huma Indah Mekar.
Acquired a palm oil mill company, PT Agro Mitra Madani.

2005
Certified as an ISO 14001 company.
Acquired a rubber plantations & factory, PT Air Muring.

2006
Repaid $69 million Credit Facility (RZB, Barclays).
Issued USD110m Senior Secured Notes.


2007
Closed US$50m tack-on Senior Secured Notes.
Acquired rubber factory, PT Nibung Arthamulia.
Acquired oil palm plantation, PT Sumbertama Nusapertiwi.
Acquired Solegna & Great Four.
Rights Issue II & warrant.
Acquired two oil palm plantations PT Grahadura Leidongprima and Guntung Idamannusa.

Link: Bakri Sumatra Plantations