PTPN Targets PalmCo Subholding To Be IPO Next Year

President Director of PTPN Muhammad Abdul Ghani. (Photo: Mery Handayani/VOI)

JAKARTA - PT Perkebunan Nusantara (PTPN) targets subholding the palm oil plantation sector, PalmCo to list initials or Initial Public Offering (IPO) on the stock exchange in 2024.

President Director of PTPN Muhammad Abdul Ghani said, after successfully forming a subholding for the sugar cane and sugar sugar plantation sector, PTPN will also form PalmCo in the near future.

"First, we have formed sugar into one ecosystem for Sugar Company for two years. Where previously there were 7 PTPNs managing sugar cane into one Sugar Company, and this year it has shown good financial performance," he said at the BUMN Ngopi event, at the Ministry of SOEs, Jakarta, Thursday, October 26.

Not only that, he said, currently PTPN is also in the final process for the formation of SupportingCo.

In line with that, PTPN subholding will focus on managing the company's plantation assets.

"So the next one is probably 1-2 weeks. Hopefully, we will form a subholding called Palm and SupportingCo. Palm (PalmCo) will manage all palm oil plants later," he said.

After the formation, said Abdul Ghani, the company also pursued control of 700,000 hectares of palm oil in the next 10 years.

One way is to convert rubber plantation land into oil palm plantations.

"Even our target is that in the next 10 years we will expand our palm oil to 700,000 hectares by converting from rubber, from other commodities to palm oil," he said.

In line with that, said Abdul Ghani, the company also plans to conduct an Initial Public Offering (IPO) from PalmCo next year. He revealed that the preparation process for the formation of PalmCo had been carried out since 1.5 years ago.

"And this is what we will bring, we will sell it to the IPO plan next year. So we are making preparations, hopefully next year we can carry out an IPO and we have started the steps from 1.5 years ago," he said.