This Integrated Palm Project is Ready to Proceed After Eid

PT Perkebunan Nusantara (PTPN) IV PalmCo, Sub Holding PTPN III (Persero), is shifting its business focus from mere production and export of crude palm oil (CPO) to developing high-value derivative products to accelerate economic growth.

PTPN IV PalmCo’s President Director, Jatmiko K Santosa, admitted to shifting the business focus towards developing derivative products, one of which involves processing fresh fruit bunches (TBS) into advanced products such as Bio Propylene Glycol (BioPG), which can significantly increase economic value.

“The value added from this downstreaming can increase up to several dozen times. This is our main driving force,” he said on Thursday, 26 March 2026. He also stated that the company is currently preparing to start construction (groundbreaking) of the integrated palm processing facility in the Sei Mangkei Special Economic Zone (KEK), North Sumatra.

According to Jatmiko, the construction plan is part of the company’s strategic direction that aligns with the national downstreaming policy, including directives from the Badan Pengelola Investasi Daya Anagata Nusantara (Danantara).

“This programme is part of a broader downstreaming ecosystem, not only in the palm sector but also cross-sector as directed by Danantara,” he said.

Nevertheless, Jatmiko emphasised that the groundbreaking implementation time is still awaiting the shareholder’s decision, and the activity can be carried out in the near future, after the Eid period. “Our readiness is already mature. We just need to wait for the shareholder’s decision, and we estimate it can be done post-Eid,” he explained.

In the initial development phase, PalmCo will build several main facilities targeted to operate in stages starting from the end of 2028.

These facilities include a margarine and shortening factory with a capacity of around 40,000 tonnes per year, as well as a Cocoa Butter Equivalent (CBE) and Cocoa Butter Substitute (CBS) factory with a capacity of around 34,000 tonnes per year.

In addition, PalmCo will also develop other advanced processing facilities to strengthen Indonesia’s position in the global supply chain of palm-based products.

The construction of a biodiesel factory with a capacity of around 450,000 tonnes per year will also be part of the subsequent development, particularly to support national energy resilience.

The palm oil downstreaming project is projected to provide broad economic impacts, including in terms of employment absorption.