PT Perkebunan Nusantara (PTPN) IV PalmCo, a sub-holding of PTPN III\n(Persero), is shifting its business focus from mere production and\nexport of crude palm oil (CPO) to developing high-value downstream\nproducts to accelerate economic growth.<\/p>\n
PTPN IV PalmCo\u2019s President Director, Jatmiko K. Santosa, stated that\nthe company is now concentrating on developing downstream products,\nincluding processing fresh fruit bunches (TBS) into advanced products\nlike Bio Propylene Glycol (BioPG), which can significantly increase\neconomic value.<\/p>\n
\u201cThe value added from this downstream processing can increase up to\ndozens of times. This is our main driving force,\u201d Jatmiko said in a\nstatement in Jakarta on Wednesday.<\/p>\n
He conveyed that the company is currently preparing to start\nconstruction (groundbreaking) of an integrated palm oil processing\nfacility in the Sei Mangkei Special Economic Zone (KEK) in North\nSumatra.<\/p>\n
\u201cThis programme is part of a broader downstream ecosystem, not only\nin the palm oil sector but also across sectors as directed by\nDanantara,\u201d Jatmiko said.<\/p>\n
Nevertheless, he emphasised that the groundbreaking timing is still\nawaiting a decision from shareholders, and the activity could take place\nsoon after the Eid al-Fitr period.<\/p>\n
\u201cOur readiness is already mature. We just need the shareholders\u2019\ndecision, and we estimate it can be done post-Eid,\u201d he said.<\/p>\n
The facility will encompass a margarine and shortening factory with a\ncapacity of around 40,000 tonnes per year, as well as a Cocoa Butter\nEquivalent (CBE) and Cocoa Butter Substitute (CBS) factory with a\ncapacity of around 34,000 tonnes per year.<\/p>\n
In addition, PalmCo will develop other advanced processing facilities\nto strengthen Indonesia\u2019s position in the global supply chain for\npalm-based products.<\/p>\n
The construction of a biodiesel factory with a capacity of around\n450,000 tonnes per year will also be part of subsequent developments,\nparticularly to support national energy resilience.<\/p>\n
During the construction phase to full operations, PalmCo estimates\nthat a total of around 2,900 workers will be absorbed.<\/p>\n
\u201cThis is not just an industrial project, but also an effort to\nstimulate the regional economy and create more equitable growth,\u201d\nJatmiko stated.<\/p>\n
Besides direct employment absorption, the presence of this industrial\nzone is also expected to trigger multiplier effects for other economic\nsectors, such as logistics and small and medium enterprises around the\narea.<\/p>\n
PalmCo projects that by 2030, the facility will be able to process up\nto 2.7 million tonnes of fresh fruit bunches (TBS) per year, equivalent\nto around 567,000 tonnes of CPO.<\/p>\n
\u201cWith this downstream processing, we want to ensure that farmers\u2019\nproduce is absorbed sustainably. This is important for maintaining the\nstability of the national palm oil ecosystem,\u201d he said.<\/p>\n
PalmCo is optimistic that with integration from upstream to\ndownstream and support from national policies, this project will become\na key milestone in driving the transformation of Indonesia\u2019s palm oil\nindustry towards high-value-added products.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/palmco-shifts-focus-to-downstream-products-to-boost-the-economy-1774450283", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }