Will IPO IDR 10 Trillion, PalmCo Wants To Build A Cooking Oil Factory

Illustration (Photo: Doc. Antara)

JAKARTA - PT Perkebunan Nusantara (PTPN) III will deliver its subholding which is engaged in the palm oil sector, namely PalmCo to carry out an initial public offering (IPO).

The company targets to be able to reap fresh funds of IDR 5 to IDR 10 trillion through the IPO.

However, before carrying out the corporate action, consolidation will be carried out first.

Not only land, but the entire PTPN III palm processing plant will be merged into PalmCo.

As is known, currently PTPN has a palm oil area of 500,000 hectares. The company will also convert 200,000 hectares of rubber land into palm oil. The land will then be consolidated to PalmCo.

"Later, the factories will be consolidated. So far, no. PTPN I has its own factory, PTPN II also has its own. This will be consolidated," said Special Staff to the Minister of SOEs Arya Sinulingga, Monday, August 29.

It doesn't stop there, Arya said, there will also be an IPO fund allocated for the construction of a palm oil processing plant.

"Bikin pabrik baru. Sehingga ini akan kenceng membuat minyak gorengnya. Salah satunya menggunakan dana IPO itu," ujarnya.

Arya explained that the presence of PalmCo subholding will neutralize the price of cooking oil in the market, in the event of an increase in prices.

The establishment of subholding was also motivated by the lack of role of SOEs in the cooking oil industry. In fact, SOEs are required to intervene in the market when there is no price balance.

"That's why at this time our cooking oil in BUMN has a less role, because it doesn't manage a lot of oil, that's why we build sub holding PalmCo, focus on procuring migrants, if this is the case," he said.

Even so, the Ministry of SOEs ensures that the establishment of palm palm oil subholding owned by Holding Perkebunan Nusantara or PTPN III is not to monopolize the domestic cooking oil industry.

For your information, Holding Perkebunan Nusantara is indeed aiming for the establishment of three subholdings. Apart from PalmCo, two other subholdings are Sugar Co and Supporting Co.

Through these three subholdings, PTPN III will optimize its assets in supporting the national food security program.

For Sugar Co, it will be an entity that consolidates 36 sugar factories (PG) through strategic partnerships.

This entity is targeted to contribute to the achievement of national sugar self-sufficiency with a sugar production target of 1.8 million tons per year in 2026.

Meanwhile, Supporting Co is focused on managing PTPN's Group business.

In addition to sugar and palm oil commodities, this subholding focuses on strengthening tea and coffee commodities, to developing new business models based on asset optimization.