Initial Export Of Palm Oil Shells To Japan, JV Owned By Conglomerate TP Rachmat And EREX Singapore Commitment To Send 70 Thousand Tons Per Year

JAKARTA - PT Dharma Sumber Energi (DSE), a joint venture (JV) between PT Dharma Satya Nusantara Tbk (DSNG) owned by conglomerate TP Rachmat and eREX Singapore Pte Ltd, exports 10,500 tons of palm kernel shells (Palm Kernel Shell) to Indonesia. Japan. The inaugural export is a follow-up to the cooperation agreement between DSE and eREX Singapore PTE Ltd, which was signed last September 2020 in Jakarta.

The palm oil shells will be used as raw material for biomass power plants in Japan. eREX Singapore PTE Ltd is a subsidiary of eREX Co. Ltd., the largest publicly traded company in the development of biomass power plants in Japan.

The initial export activity was marked by the process of loading palm shells onto a barge which took place in Samarinda, Tuesday 28 June.

President Director of DSE Efendi Sulisetyo said the collaboration with eREX is a long-term collaboration for 15 years with a volume of 70,000 tons of shells per year. Until the end of 2022, DSE will supply around 21,000 tons of palm kernel shells which will be shipped in stages from East Kalimantan.

The palm oil shells come from a factory owned by DSNG in Muara Wahau, East Kalimantan, which is RSPO certified. In addition, DSE has also completed an audit of the Green Gold Label certification, which is an international certification for sustainable biomass, and has been approved by the Ministry of Economy, Trade and Industry in Japan.

Thus, the palm kernel shell is a product that has met the sustainability aspects required by the Japanese government for biomass power plant products.

"This long-term contract with eREX opens up our opportunity to export shells to Japan as biomass raw material for the biomass-based power plant owned by eREX," said Efendi.

The collaboration with eREX, according to Efendi, is also a strategic step for DSNG, as the parent company of DSE, in implementing a sustainability policy, namely by utilizing the waste generated from the CPO production process into products with economic value and in accordance with the principles of Environment, Social and Governance (ESG).

Meanwhile, a representative from eREX Japan, Hiroaki Goto said, this inaugural experience is an important milestone for DSE and eREX. So far, most of the palm kernel shells exported to Japan come from palm oil mills in the Sumatra region.

“In the future, East Kalimantan will play a bigger role as a supplier of palm oil shells. Therefore, this area will be our next source of supply for expansion," he said.