Domas P&G sign $1.8b deal

Domas P&G sign $1.8b deal

Ridwan Max Sijabat, The Jakarta Post, Jakarta

Palm oil plantation PT Domas Agrointi Prima, a unit of the Sawit
Mas Group, signed a second business deal worth US$1.8 billion
with Procter & Gamble Chemicals (P&G Chemicals), a major American
company concentrating its activities in consumer products.

The signing that took place in Singapore on Friday was
conducted by Sawit Mas Group Chairman Susanto Lim and P&G
Director for Asia-Pacific Region Martin Herrington.

Also attending the signing ceremony were P&G vice president
Ian S. Edward, Domba Mas Group CEO Michael Utama Purnama, Bank
Mandiri president ECW Neloe and BRI president Rudjito.

Sawit Mas Group spokesman Erick Sitompul told The Jakarta Post
by phone that with the business deal, the second such deal this
year, Domas Agrointi Prima would supply oleochemicals to the
American company.

"This new contract gives a guarantee for our operation and for
the life of thousands of workers employed in our plantations and
factories," he said.

He added that the two sides had been tied with a business deal
totaling $2 billion as they signed such a contract worth $200
million in January, this year.

He did not provide details of the second contract.

Sawit Mas Group who have had a total of more than 100,000
hectares of oil palm plantations in Sumatra and operated several
(crude palm oil) CPO factories in Riau and North Sumatra, is
constructing an integrated oleochemical factory in Kuala Tanjung,
some 150 kilometers southeast of Medan, capital of North Sumatra.

Edward, in his speech, appreciated the business deal that
would be of mutual benefit for the two sides and their employees,
saying that Domas had showed its seriousness by preparing several
large oil palm plantations, CPO factories and an integrated
oleochemical factory, and this business deal would help spur on
Indonesia's economy in the future.

He said that his company decided to enhance cooperation with
Sawit Mas after it conducted a long in depth study that involved
50 experts.

Bank Mandiri and BRI said that they were committed to helping
to finance the construction of the Sawit Mas Group's oleochemical
factory because the business deal was quite promising.

"Bank Mandiri is committed to supporting the development of
the agroindustry sector and major palm oil plantations in
Sumatra, Kalimantan (Indonesian Borneo), Sulawesi and Papua," the
bank's president E.C.W. Neloe said after the signing ceremony.