HISTORY

The history of PT Bakrie Sumatera Plantations Tbk ("BSP"  or   "Company") was started with "NV Hollandsch Amerikaanse Plantage Maatschappij" which was established in 1911. In year 1986, Bakrie Group took over all the company’s shares from Uniroyal Sumatera Plantations, a subsidiary of Uniroyal Inc. United States of America. The name was then changed to "PT United Sumatera Plantations". In 1992, the Company’s name became "PT Bakrie Sumatera Plantations". Finally in 1997, to comply with the Corporate Law and the Capital Market Law, the Company was subsequently renamed to "PT Bakrie Sumatera Plantations Tbk". The take-over marked Bakrie Group’s involvement in agro-business.

The year 1990 was a historical year for the Company, whereby it listed 30% of its shares at the Jakarta Stock Exchange (JSX) and Surabaya Stock Exchange (SSX), using “UNSP” as the code for the company’s stocks transaction at both exchanges. Since 31 December 1999, the Company listed 100% of its stocks at JSX and SSX.

As a company with a core business in rubber plantations, BSP group produces natural rubber with various product types and quality. In addition to being used as raw materials for tires, natural rubber can also be developed into other range of products from rubber thread to adhesives. The Company maintains a flexible process of production to enable it to fulfill the various specifications required by its clients.

To fulfill a specific niche market, the Company has developed  a   unique   product   namely   Cream Latex
NC 358, which has been marketed to manufacturers of surgical gloves, condoms and adhesives. In addition, the Company also produces a range of rubber products for special application, such as latex concentrate NC 405, NC 411 and Standard Indonesian Rubber (SIR).

The Company’s natural rubber processing plant is located in Bunut, Kisaran, North Sumatra, where it caters to the various needs of the international market. The plant has a production capacity of 19.1 thousand tons of Cream Latex, 13 thousand tons of Centrifuge Latex and 16.8 thousand tons of crumb rubber per year.

In 1990, the Company expanded its core business by establishing PT Bakrie Pasaman Plantations (Bakrie Pasaman) in Pasaman, West Sumatera, which manages palm oil plantations. In the following year, the Company acquired another palm oil plantations in Jambi, namely PT Agrowiyana. In 1992, the Company converted part of its rubber plantations in Kisaran into palm oil plantations.

The decision to enter into the palm oil industry is based on the fact that it is a very profitable business. Palm oil is known to be a highly productive crop in comparison to other type of plantation commodities, and has a higher adaptability to changes in climate.

In addition to managing nucleus estate projects, Bakrie Pasaman and Agrowiyana also develops plasma estate projects owned by local communities. The Plasma program is funded through a credit scheme available for members of Primary Cooperatives (KKPA) and supported by the government, as a means to develop plantations owned by members of the Cooperatives. Moreover, the Company also develops plasma estate projects under Nucleus Estate Smallholders program (PIR-Trans) to support the transmigration program.

In 1996, the Company obtained ISO 9002:1994 international certification on quality management system from Lloyd’s Register Quality Assurance. Such achievement is the result of hard work and cooperation between the management and employees of the Company. It also indicates recognition from international standards organization on implementation of quality management system, conducted by the Company on maintenance and management of rubber plantations as well as the processing of latex into other rubber products.

Bakrie Pasaman established a Palm Oil Processing Plant in 1996 with a production capacity of 30 tons of Fresh Fruit Bunches (FFB) per hour, which had been increased to 40 tons of FFB per hour in 2001. The production capacity can still be increased to 60 tons of FFB per hour.

The Company also entered into palm oil refinery by establishing PT Kilang Vecolina in Karawang, West Java, which began its commercial production in 2000.

Agrowiyana, in cooperation with a third party is in the process of completing the development of a CPO mill in Jambi, with a production capacity of 60 tons of fresh fruit bunches per hour. This mill is scheduled to be completed within the third quarter of 2003.