Commemoration Of Cultural Day, PalmCo Reveals The Legacy Of Indonesian Old Plantations That Are Still Living Until Now

JAKARTA - The commemoration of the National Cultural Month of October 2025 for PTPN IV PalmCo is not only a reflection on arts and traditions, but also about how this nation maintains the historical footprint that forms its identity.

Interestingly, behind oil palm plantations that are the lifeblood of the country's economy, PalmCo holds cultural heritage that lives from an old Dutch building, which is more than a century old, to a tea factory that still billows on the slopes of the mountain.

President Director of PTPN IV PalmCo, Jatmiko K. Santosa, explained the history of state-owned plantation companies in Indonesia starting in 1958, when the government took over all Dutch plantation assets through Law Number 86 of 1958. From this nationalization process, the Company of State Plantations (PPN) was born which manages various plantations in Sumatra and Java.

Ten years later, PTPN transformed into a Plantation State Company (PNP), then became PT Perkebunan (Persero) in 1974. Great reforms occurred in 1996, when the government merged a number of PTP into PT Perkebunan Nusantara IV (PTPN IV), with a head office in Medan.

"PTPN IV is one of the main players in the production of palm oil and tea in Indonesia, with gardens scattered in North Sumatra and mountainous areas such as Bah Butong and Tobasari," Jatmiko explained to reporters, Tuesday, November 4.

Jatmiko said the reform of the plantation business structure continued in 2014-2015, when PTPN III (Persero) was appointed as the holding company for the Nusantara Plantation. The goal is to strengthen the competitiveness and efficiency of state plantation companies.

A big leap occurred in 2022 2023, when the Ministry of SOEs under the leadership of Erick Thohir formed a PalmCo Subholding palm giant company that was consolidated by six PTPN (IV, V, VI, VII, XIII, and XIV). In this new structure, said Jatmiko, PTPN IV is believed to be the parent company of PalmCo, bringing vision to become the largest palm oil company in the world with a land area of more than 600 thousand hectares.

"However, behind all the innovations and restructurings, PalmCo has never forgotten its roots: the history that gave birth to this company," said Jatmiko.

Jatmiko revealed, in the center of Medan City, there was a magnificent old colonial architecture building which is now the office of PTPN IV Regional II. This building, he said, still emits the aura of the past with high ceilings, large windows, and details of typical Dutch architecture.

"Not only being an administrative center, this building is also a living witness to the journey of Indonesian plantation SOEs, as well as educational facilities for the younger generation through programs such as students who know Nusantara (SMN)," he said.

"About two hours from Medan, in Asahan Regency, there is Pulu Raja Garden, one of the oldest gardens in Indonesia that has existed since the VOC era.

"This garden is still productive with palm oil reaching 32 tons per hectare, making it a unique example of how colonial heritage can continue to adapt and provide benefits for the modern generation," he continued.

Apart from North Sumatra, Jatmiko, said, several other historic gardens are still operating under the auspices of PalmCo. One of them is Ophir Gardens in West Sumatra, a legacy of a Dutch plantation company built in the early 20th century.

"This hoard is known as an old palm oil processing plant that is still active, as well as a colonial-style official house that is neatly arranged in the middle of the green landscape. Meanwhile, the Bekri Unit in Lampung also stores the remains of colonial history which has now transformed into a modern plantation area," he said.

Up to an altitude of 1,400 meters above sea level, at the foot of Mount Kerinci, Jambi, added Jatmiko, the establishment of the Kayu Aro Tea Factory, the world's second-largest tea factory that is still actively operating. Founded by the Netherlands in 1925, this factory produces premium-quality black tea that was once Queen Elizabeth II's favorite tea.

"More than just a production site, Kayu Aro is now an icon of historical tourism and agroindustry, attracting thousands of tourists every year who want to see firsthand how historic tea is processed in traditional ways," he added.

Jatmiko emphasized that historical assets under PalmCo are not just past relics. According to him, this asset is a marker of Indonesia's long economic journey from colonial times, nationalization, to transformation towards modern industry.

"The existence of old buildings, heritage gardens, and factories a century old shows that progress does not have to erase the past. Instead, that is where strength lies: respecting history while moving forward," he said.

"At the moment of National Cultural Day, the existence of PalmCo historical assets serves as a reminder that Indonesian culture is not only about dance, cloth, or language, but also about work ethic, perseverance, and innovations born from the roots of the nation's long history," concluded Jatmiko.