SOE Minister Calls PTPN III PalmCo Subholding IPO Held At Kurtal IV 2023

Illustration (Photo: Doc. Antara)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed that the initial offering or PalmCo IPO is planned to be carried out in the fourth quarter of this year.

The company is a spinoff of the Nusantara Plantation Holding to strengthen the palm oil industry ecosystem and its derivatives.

"For the palm oil industry, now we are in the application for a permit to draft government regulations on the formation of PalmCo. Hopefully, in the fourth quarter, corporate action can be carried out," he said in a meeting with Commission VI of the DPR, Monday, March 20.

Erick emphasized that the presence of PalmCo is very important in optimizing derivatives of palm oil products.

According to him, with this corporate action, state-owned palm oil companies could be the largest.

One of the functions is industrialization in Indonesia. So that the derivative of the palm oil industry is in the 80s. We will see that one of the raw materials is indeed for the make-up industry," he said.

Indonesia's make-up market reaches the top 5 in the world. Now 70 percent of the raw materials are from local products. This proves that downstreaming is beneficial for Indonesia if we are serious," he continued.

Erick said PalmCo consolidation will also increase the area of SOEs' land and productivity for cooking oil.

With this consolidation, continued Erick, his party targets 600,000 to 700,000 hectares of oil palm plantations under the PTPN Group.

"Regarding the consolidation and corporate action of PalmCo, it is very potential that state-owned palm oil companies can become the largest if there really occurs 600,000 to 700,000 hectares. So it is bigger than Same Darby from Malaysia, and Golden Agri from Indonesia," he explained.