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Jakarta Post

Golden Agri to spend $550m for expansion

  • Tassia Sipahutar

    The Jakarta Post

Jakarta   /   Thu, March 14 2013   /  11:53 am

The world’s second-largest oil palm plantation firm Golden Agri-Resources Ltd. (GAR), part of the Sinar Mas Group conglomerate, is earmarking US$550 million for capital expenditure (capex) this year as it plans to acquire more concession areas and increase the capacity of its refineries.

About $200 million of the capex figure would be allocated for its upstream business, while the rest would be channeled to its downstream business, the Singapore-listed firm announced in Jakarta on Wednesday.

GAR plans to acquire between 35,000 and 40,000 hectares of new concession areas, mostly located in Kalimantan. By year-end, it hopes to have up to 503,400 hectares of plantation areas, including plasma, 8.6 percent higher than 2012.

In its downstream division, the firm is expanding the capacity of its North Sumatra refineries and expects to produce 2.6 million tons of refined p...