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10 Palm Oil Companies having Widest Areas Do not Cultivate



10 Palm Oil Companies having Widest Areas Do not Cultivate
InfoSAWIT, JAKARTA – Since 2013 the refineries, the crude palm oil (CPO) trades announced the third suppliers from the CPO they get. According to the researches done by Chain Reaction Research, there might be 900 palm oil factories (POFs) in Indonesia. The source of fresh fruit bunch (FFB) could be from the areas, and the third suppliers and the smallholders (plasma).
 
Until now, it is hard to get the data of concession areas of palm oil in Indonesia knowing that the assumption saying that palm oil concession areas is the secret of the country. Still refers to Chain Reaction Research that cooperates with Aidenvironment, the compilation of palm oil concession areas in Indonesia might be about 21 millions hectares (ha).
 
Kalimantan is the largest one having concession areas, reaching about 12 millions ha, then North Sumatera reaching 5,3 millions ha, Papua reaching about 3,1 millions, and the last is Sulawesi reaching 491 thousand ha. 
 
But there were other researches saying, palm oil areas in Indonesia now lay about 15 millions ha, not included in the last five years and the areas belonging to the smallholders.
 
There are about 95 companies groups have about 1000 hectares where they are not cultivated yet (no palm oil planting) and 35 of them are the open companies.
 
Here are the result of researches of Chain Reaction Research in the early of 2017: there are 10 companies having the concession areas but do not cultivate the areas.
 
The first, palm oil concession areas belong to Pacifik Inter-Link, Tadmax, and Menara: Tanah Merah in Papua. Tanah Merah has project in Papua within 7 concession areas. The companies are the cooperation among the investors from Malaysia, Kuwait, and Indonesia, including involving the Police and Army from Indonesia.
 
The palm oil development projects are in the small and medium scale companies – the fruit would be processed in the refinery belonging to Pacifik Inter-Link. “The company does not care about the environment and social aspects,” Chain Reaction Research claimed.
 
Tadmax Resources  does not cultivate about 76.292 hectares (ha) yet, Pacifik Inter-Link reaching 159.239 ha and Tanah Merah reaching about 38.607 ha. So the total areas where they do not cultivate still reach 246.531 ha or about (90%) of the total landbank reaching 273.394 ha.
 
The second, Korindo. It is an investment of South Korean palm oil company. In the beginning, the company focused to develop hardwood, plywood/veener in 1979, then produced paper for newspaper in 1984, then wood plantation in 1993 and the last, developed palm oil in 1995. Chain Reaction Research noted, the areas that the company does not cultivate may be about 150 thousand ha where forest, peat and peat forest are in.
 
The third, PT Astra Agro Lestari. The company is the subsidiary of Astra Internasional (ASII) that is a powerful company. The issue about share owners belonging to the Norwegian retire men did not damage the company for the fund was taken back and returned to the joint-venture, Jardine.
 
Through Jardine Strategic Holding, Ltd., in Bermuda, it develops investment company in Singapore, called Jardine Cycle & Carriage Ltd. From the company, Jardine successfully has share 50,11% in PT Astra Internasional Tbk., that the main industry of Astra Agro Lestari Tbk., within the share position, reaching 79,68%.
 
Based on the data of the official website of the company, PT Astra Agro Lestari Tbk., does huge expansion compared to the other national palm oil companies. But the strange is that the expansion runs since 2011 when Forest and Peat Moratorium was published.
 
The main and plasma areas of PT Astra Agro Lestari Tbk., tend to be stagnant before 2011. It could be seen in the main enlargement of the company. In 2010, it tended to decrease about 0,755 ha. On the other hand, the plasma of the company did not enlarge at all.
 
According to what InfoSAWIT recently got, in 2011, when Peat and Forest Moratorium was published, the company started to expand the main areas, reaching 0,537 ha.But the plasma of the company could be reaching 2,888 ha in the same year.
 
The peak largest enlargement of PT Astra Agro Lestari Tbk., happened in 2014 – the company’s main areas enlarged reaching 15.290 ha while the plasma of the company developed only 0,911 ha. In the same year, the company expanded up to 16,201 ha.
 
According to Chain Reaction Research, the areas that the company has, or no planting, lay about more than 125 thousand ha. The peat dominates the areas, about more than 50%, then forest areas, and peat forest areas. (T2)

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