TP Rachmat Raup Conglomerate's Palm Oil Company Earns IDR173 Billion From IPO

Board of Directors and Commissioners of Triputra Agro. (Photo: Doc. Indonesia Stock Exchange)

JAKARTA - Palm oil company, PT Triputra Agro Persada Tbk managed to raise fresh funds of IDR 173.24 billion from the capital market through an initial public offering (IPO) conducted on Monday, April 12. The company owned by TP Rachmat conglomerate is listed on the stock exchange with the ticker code TAPG.

Corporate Secretary of Tripura Agro Persada, Joni Tjeng said that the funds obtained from the action will be used to increase the capital investment of subsidiaries, namely PT Agro Multi Persada (AMP).

"The funds will be distributed to AMP's subsidiaries, namely PT Sukses Karya Mandiri (SKM) for capital expenditures and working capital in connection with the construction of SKM factories in Central Kalimantan", Joni said as quoted from his written statement, Tuesday, April 13.

In addition, Triputra Agro will also use the remaining IPO proceeds for working capital in the form of fertilizer purchases. TAPG is one of the subsidiaries of Triputra group owned by TP Rachmat and Persada Capital owned by Benny Subianto conglomerate.

TAPG is a palm oil plantation company, rubber, and processing industry. Currently, the company operates in 24 oil palm plantation sites, 1 rubber plantation, 15 palm oil mills, 1 Ribbed Smoke Sheet (RSS) plant, and 4 subsidiary branch offices located in Jambi, Central Kalimantan, and East Kalimantan.

Joni said that the company has a commitment to always produce high-quality palm oil (Crude Palm Oil) and palm kernel to meet the needs of the market at home and abroad.

"In developing its business, the company upholds its Sustainability Commitment by adopting world-recognized standards. This can be seen from the acquisition of Roundtable on Sustainable Palm Oil (RSPO) certificate and Indonesian Sustainable Palm Oil (ISPO) certificate", said Joni.

In order to achieve the goal of creating business sustainability, community empowerment, and environmental maintenance, the company also helped build cooperation by establishing plasma-core programs with plasma farmers and plasma plantation cooperatives. The Company has developed an information technology system by utilizing Artificial Intelligence and Remote Sensing technology in its operational activities.

It also develops Good Agricultural Practices to achieve TAPG's vision and support sustainable palm oil businesses.

In the initial public offering, TAPG released 866.200.000 shares with a value of IDR 100 per share and a share offering price of Rp200.

In addition, the company also held an Employee Stock Allocation (ESA) program with a total of 0.57 percent of the shares offered in the public offering or as much as 4.89 million shares. As the underwriter of TAPG in this IPO are PT Ciptadana Sekuritas Asia and PT Trimegah Sekuritas Indonesia Tbk.