The country's fifth-largest plantation owner by value, PT Bakrie Sumatera Plantations, booked a 794 percent increase in its first quarter net profit helped by stronger prices of palm oil.

President director Ambono Janurianto said Wednesday the firm's net profit had reached Rp 165 billion (around US$18 million) by the end of March this year, jumping from Rp 18.5 billion in the same period last year.

He said sales in the first three months climbed to Rp 678 billion from Rp 264 billion and that its operational income reached Rp 222 billion from Rp 70 billion a year earlier.

"This indicates that we're going to be very strong in growth this year, both in land ownership and net profit," he said.

Ambono said the company expected to acquire 200,000 hectares of land by the end of 2011. Currently, the company has a total 106,000 hectares of planted land, up from 52,000 hectares at the end of 2007.

For this year's strategies, the company has set aside US$100 million in cash, $40 million of which will be used to buy a further 26 percent of PT Agri Resources BV (ARBV).

"We plan to increase our share in ARBV from the current 25 percent to 51 percent," Ambono said.

He said 25 million of the fund would be used for the company's capital expenditure worth $25 million, with the remaining cash to finance its joint venture company with Bakrie Sentosa Persada, called PT Indo Green International, in its efforts to turn 50,000 hectares of empty land into CPO plantations.

He said the strategies would help the company increase CPO production to 340,000 tons this year, an 88.8 percent increase from 180,000 tons in 2007, and that Bakrie's rubber production would reach 40,000 tons this year, up from 29,500 tons last year.

The company's total 2008 revenue is targeted to reach Rp 3.5 trillion.

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