TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsBakrie Sumatra aims to double revenue after acquisitions
The country’s fifth largest crude palm oil producer PT Bakrie Sumatra Plantations is aiming to double revenue by 2011 as its recent acquisition plans are expected to boost its derivatives business
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
T
he country’s fifth largest crude palm oil producer PT Bakrie Sumatra Plantations is aiming to double revenue by 2011 as its recent acquisition plans are expected to boost its derivatives business.
Bakrie finance director Harry M. Nadir said on Monday that the acquisitions of PT Domas Agrointi Prima and PT Domas Sawitinti Perdana, locally known as Domba Mas Group, would give the company the chance to enter the oleochemical business, which was still largely undeveloped in this country.
“The company’s revenue is expected to double in 2011, when the factories [of Domba Mas] will be in full operation,” Harry Said.
As of September this year, the company booked a revenue of Rp 1.6 trillion (US$168 million), dropping by 31.4 percent as compared to that of in 2008. The company expects to post Rp 2.3 trillion in revenue by the end of this year, president director Ambono Janurianto said.
The oleochemical business is a very promising sector in this country as it is still under developed with only one or two players existing while the demand is rising.
Oleochemicals are chemical substances usually used in manufacturing processes to replace petrochemicals because they are cheaper as they are made from plants (in this case palm kernel oil).
Ambono said that the company would create the biggest oleochemical industry in Indonesia as a result of the acquisitions.
The company announced earlier this month that it planned to spend up to Rp 2.2 trillion to buy five oleochemical and palm oil manufacturers. To finance the acquisitions, it will launch a rights issue worth Rp 4.97 trillion.
Under the rights issue plan, Bakrie will sell 9.47 billion new shares at Rp 525 each on Jan. 28.
The company will hold an extraordinary shareholders’ meeting to seek approval for the acquisitions.
The proceeds will also be used to finance capital expenditure and acquire plantations in Sumatra and Kalimantan.
Ambono said the company would spend Rp 1.2 trillion on the upgrading of oleochemical plants while the remaining Rp 500 billion would be allocated for land acquisition.
Domba Mas operates oleochemical plants with a total production capacity of 140,000 tons.
—JP/Ika Krismantari
