Astra Agro plans new CPO plants<\/p>\n
JAKARTA (JP): Publicly listed plantation company PT Astra Agro
\nLestari announced on Monday it would begin operating two new
\ncrude palm oil (CPO) plants by the end of the first half of this
\nyear to process the expected increase in its oil palm production.<\/p>\n
The company, a subsidiary of PT Astra International, said in a
\nstatement the addition of the two plants would bring its total
\nnumber of CPO processing plants to 14, with a total capacity of
\n497 tons of fresh fruit per hour, up from the present 447 tons
\nper hour.<\/p>\n
The company said its CPO output jumped 30.8 percent to 61,880
\ntons in the first quarter of this year compared to 47,301 tons in
\nthe same period last year.<\/p>\n
An increase in mature plantation acreage was the main reason
\nbehind the rise in CPO production, it said.<\/p>\n
The company said its mature plantation acreage stood at
\n127,382 hectares, or 69.4 percent of the company's total planted
\nacreage of 183,482 hectares, a rise from 52.5 percent at the end
\nof last year.<\/p>\n
The company, which primarily sells its CPO products locally,
\nalso reported its net profit in the first quarter of this year
\njumped 73 percent to Rp 50.71 billion from Rp 29.3 billion in the
\nsame period last year.<\/p>\n
The company's net sales shot up 78.2 percent to Rp 226.24
\nbillion during the first quarter of this year, a rise from Rp
\n126.97 billion in the same period in 1998.<\/p>\n
Its operating income stood at Rp 95.08 billion during the
\nperiod, up 36 percent from Rp 70.14 billion.<\/p>\n
The company said the increase in sales was mostly due to the
\nsurge in the sales of CPO, the main material for cooking oil. CPO
\nsales made up 94.2 percent of the company's net sales during the
\nfirst quarter of this year, following an increase in the
\ncompany's CPO production.<\/p>\n
Making up the rest of the company's sales were rubber, tea and
\ncocoa. Sales of these products surged 44.2 percent compared to
\nthe first quarter of 1998.<\/p>\n
The company said the average selling price of its CPO in the
\nfirst quarter was Rp 2,410 per kilogram, slightly higher than the
\nRp 2,375 per kilogram in the same period last year.<\/p>\n
A company spokesman was quoted by Dow Jones newswires as
\nsaying Astra Agro did not export any crude palm oil in the first
\nquarter because domestic prices were more attractive than
\noverseas prices because of the 40 percent export tax on CPO.<\/p>\n
The company earlier planned to export some 40 percent of its
\nCPO products this year, depending on the speed with which the
\ngovernment reduced the export tax.<\/p>\n
The government currently imposes export taxes of up to 40
\npercent on CPO and its by-products in an attempt to force
\nproducers to sell their CPO on the local market. The high export
\ntaxes were introduced after a massive outflow of CPO exports
\nfollowing the rupiah's sharp drop against the US dollar.<\/p>\n
During the first quarter of this year, the company also
\nproduced 2,051 tons of rubber, 723 tons of tea and 299 tons of
\ncocoa.<\/p>\n
Rubber and cocoa production increased from the same period
\nlast year, while tea production dropped by 27.1 percent compared
\nto the first quarter of 1998.<\/p>\n
The company exported 164.8 tons of rubber, 125 tons of cocoa
\nand 51.2 tons of tea during the first quarter of this year. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/astra-agro-plans-new-cpo-plants-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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