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Palm
Overview
Our Company’s palm business covers company-owned plantations (nucleus) and the plasma-farmers’ plantations. Our Company entered the oil palm business in 1992 through the conversion of a part of the rubber plantation into oil palm plantation.
Oil Palm is a long-lived cultivated commercial crop, the fruit is further processed into crude palm oil (CPO), palm kernel (PK) and palm kernel oil (PKO). The derivative products are used as raw materials in food and nonfood industries. As an integrated agro-business, the yields of Our Company’s Oil Palm business segment are absorbed not only by the domestic and export markets, but also by the Oleochemical business segment in Our Company.
Production / Business Activities
The production of CPO and PK in Our Company is based on the supply of fresh fruit bunches (FFB) derived from both the nucleus and plasma plantations, as well as from third-party purchases. Our Company 2021 harvested FFB volume showed a 1.39% decrease over 2020 figures. Total FFB production in 2021 was 377,447 tonnes (2020: 382,757 tonnes).
Unharvested FFB was included in the biological assets, of which the amount totalled 117,319 tonnes and 115,694 tonnes for 2021 and 2020 respectively. The overall land productivity of 2021 indicated a 0.74% decrease, still due to the ongoing replanting program. CPO and PK production volumes in 2021 respectively showed a 12.21% increase to 125.98 tonnes and 21.17% increase to 29.36 tonnes compared to 2020. The increases were in line with lower estate production due to the ongoing replanting process.
Rubber
Overview
PT Bakrie Sumatera Plantations Tbk is the oldest natural rubber producer in Indonesia, established its first rubber plantation in Kisaran - North Sumatra in 1911. Our Company currently produces a complete range of natural rubber products - from latex to Block Skim Rubber (BSR), and to date is still one of the largest latex producer and the best quality cenex (centrifuge latex) producer in Indonesia.
Our Company’s rubber plantation is currently in the fourth planting cycle, as the replanting of rubber trees is commonly conducted every 25 years.
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Production / Business Activities
Our Company’s rubber production is based on the supply of latex from company-owned plantations (nucleus) and purchases from third parties. Our Company’s total latex production volume in 2021 included 15,242 tonnes of tapped latex and 46.56 tonnes of unharvested latex. The unharvested latex was included in the valuation of biological assets.
As of 31 December 2020 the volume of tapped latex was 16,746 tonnes, whereas the unharvested latex amounted to 47.30 tonnes In 2021, the total production of rubber processing plants was 13,789 tonnes, 6.32% lower than the 2020 figures of 14,719 tonnes, in line with the decrease in total estate production.
Oleochemicals
Overview
Oleochemicals are chemicals derived from renewable sources of vegetable oil and animal fat; they are alternatives to petrochemicals which are based on nonrenewable sources such as coal, crude oil and natural gas. Vegetable oil began to be used as the main raw material for oleochemicals industry after 1980. Crude palm oil (CPO) and palm kernel oil (PKO) are commonly used alternatives to be processed into various types of derivatives, as raw materials for its downstream industries, for both categories of food (including cooking oil, margarine, ice cream) or non-food (such as soaps, detergents, pharmaceutical products, cosmetics, industrial lubricants, agricultural chemicals and biofuel).
PT Bakrie Sumatera Plantations Tbk Oleochemical business segment covers the processing of fatty acid, fatty alcohol, and glycerin. Our Company also owns a refinery plant capable to produce olein, stearin and palm fatty acid distillate (PFAD).
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Production / Business Activities
In 2021, Our Company’s oleochemicals processing facilities performed the commercial production for four full years, following the re-operation in the third quarter of 2017. To ensure clean, efficient and cost-saving operations, Our Company has been using natural gas as a source of energy for heat and steam generation.
Our Company also takes advantage of the premium electricity supply from the state-owned electricity company PLN to run the processing facilities’ equipment requiring stable power supply.
