Bakrie plans massive plantation expansion

The Jakarta Post , Jakarta | Thu, 03/16/2006 8:16 AM | Business

Publicly listed plantation firm PT Bakrie Sumatera Plantation is planning to expand its palm oil and rubber plantations in Sumatra and Kalimantan over the next three years to tap the growing demand for the commodities worldwide.

The company will establish around 150,000 hectares of new oil palm plantations by 2008 at a cost of around Rp 20 million (US$2,173) per hectare. This is on top of the firm's existing 50,000 hectares, the company's commercial director, Bambang Aria Wisena, said Wednesday.

""The demand for these commodities is huge. We are going to expand our business by an average of between 20 and 30 percent annually in revenue terms. That also includes revenue from our rubber business,"" he said.

The company, which was founded by Coordinating Minister for Social Welfare Aburizal Bakrie, is also planning to establish around 5,000 hectares of new rubber plantations this year to meet growing local demand.

Bambang forecast that revenue this year would grow by 30 percent from an expected Rp 800 billion last year due primarily to higher prices for rubber and crude palm oil.

""Higher prices and more mature crops will help boost our sales this year,"" he said. -- JP

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