The Jakarta Post
State-owned plantation holding company PT Perkebunan Nusantara III (PTPN) has restructured the corporate hierarchy of its 13 subsidiaries to boost their financial and operational performance.
The holding, through a State-Owned Enterprises Ministry letter sent out on Tuesday, demoted all of its subsidiaries’ president directors to directors and their directors to senior executive vice presidents (SEVP).
Overall, PTPN III changed 43 job titles, added two new positions and eliminated one position.
“Going forward, the holding will provide strategic guidelines as well as evaluate and monitor operations, while subsidiaries will focus on producing the commodities assigned by the holding,” PTPN III president director Abdul Ghani, the sole holder of such the job title, said in a statement on Tuesday evening.
He detailed the plantation holding role as, among other duties, divesting assets, developing new business streams, maintaining cash flows and managing human resources.
The State-Owned Enterprises Ministry assigned PTPN III to become the holding company of its 13 similarly named sister companies in 2014. PTPN III, originally a palm oil and natural rubber producer, was the largest firm by assets.
Abdul said the restructuration was a continuation of the establishment of the holding, as the previous business transformation had yet to yield a desirable impact on the plantation holding’s operations and financial performance.
The company booked Rp 32.8 trillion (US$2.22 billion) in revenue in 2018, the latest available financial figure, a 6.5 percent decline from Rp 35.1 trillion in the previous year. Meanwhile, its profit also fell by 23.8 percent year-on-year (yoy) to Rp 281.4 billion in 2018.
“The holding will drive the subsidiaries,” ministry spokesman Arya Sinulingga told The Jakarta Post on Wednesday. “This is also about how the directors can be more agile by referring to headquarters’ policies.”
PTPN III, which describes itself as one of the world’s largest plantation companies, operates 1.17 million hectares of land, over half of which is used to grow palm oil. The holding also grows other top-selling Indonesian cash crops, such as natural rubber, cocoa and tea.