Completing Subholding, PTPN Will Bring PalmCo To Public List Next Year: Target Funds Of Up To IDR 10 Trillion

President Director of PTPN III (Persero) as the holding parent of PTPN Mohammad Abdul Ghani. (Photo: Doc. Antara)

JAKARTA - Holding PT Perkebunan Nusantara (PTPN) plans to conduct an initial public offering (IPO) of PalmCo subholding oil palm next year. However, the plan will be carried out after the process of establishing the subholding is completed this year.

"This process is currently underway where the establishment of the PalmCo subholding will be completed no later than October this year, considering that the formation of the subholding requires government regulations," said President Director of PTPN III (Persero) as the holding parent of PTPN Mohammad Abdul Ghani at the BUMN Coffee event, quoted by Antara, Monday 22 August.

This subholding has become a national strategic project so that the government always monitors it. Thus, the PalmCo IPO preparation process is expected to be carried out in the second or third quarter of 2023.

Ghani said that the reason why PalmCo's IPO was postponed this year to next year was because the internal subholding process was not easy.

PTPN in terms of land area currently has a national land ownership portion of around 4 percent, while in terms of production contribution it is around 6 percent. "We will increase it through this IPO," said Ghani.

PTPN itself hopes that the projected acquisition of PalmCo's IPO plan can reach between Rp 5 trillion - Rp 10 trillion.

The establishment of PalmCo aims to make SOEs play a bigger role nationally in the business of palm oil and its derivatives.

In an effort to overcome the national oil palm problem in 2021, PTPN only plays a role in 2.67 million tons or 6 percent of National CPO. Meanwhile, the national cooking oil production is around 460 thousand tons or two percent.

In addition, Indonesia has the potential for palm oil CPO to reach 52 million tons of CPO per year with 40 percent ownership of smallholders. Huge potential for downstreaming and industrialization of CPO utilization must be carried out.