Dwi Sutoro: Return The Glory of PTPN in Downstream Sectors

Dwi Sutoro: Return The Glory of PTPN in Downstream Sectors

Dwi Sutoro, Director of Marketing, Holding Perkebunan Nusantara PTPN III (Persero). Credit: Special

Palmoilmagazine.com, JAKARTA - As a figure that does palm oil downstream industry, Dwi Sutoro really understands it. His experiences are the modal that manages Holding Perkebunan Nusantara PTPN III (Persero) to be integrated company from upstream to downstream sectors.

Though it is about three years since he works at Holding Perkebunan Nusantara PTPN III (Persero), Dwi Sutoro has his will to realize the company to be the integrate world class - downstream to upstream company.

He has full determination by preparing what has been left behind to develop palm oil downstream sectors. Of course, it is not idea only because Dwi once studied in magister program at IPMI and Monash University. He has had the best strategies.

Dwi wants to return the glory of PT Perkebunan Nusantara which was a pioneer of downstream development in Indonesia and even in the world by developing refinery in North Sumatera at the era.

But it is not easy thing to realize it for it fully relates to market situation to compete in commodity sectors. Dwi continued, it needs to develop the base in the first place before developing back palm oil downstream industries in the red plate – company.

First thing first to do is that the company should have highly competitive level. He thought, palm oil plantation productivity should be better, in efficient operational costs to get more economic products. This could be the ways to face crude palm oil (CPO) price which is always in fluctuation.

The second, it needs to conduct market analysis. Dwi thought, it is essential for the management of the company to know what would be CPO price like. “To figure out, it is not only about supply and demands because there are other factors that follow, such as, other vegetable oil prices, and nowadays geopolitics,” he said to Palmoilmagazine.com in the early days of December 2022.

By developing downstream sectors, he continued, the company should have the future strategies to be balance in facing palm oil price. It needs to select what downstream sectors to do. “In the first place, we would develop downstream sectors from the middle,” Dwi said.

He also continued the company has many refineries in North Sumatera. It is planned to accomplish refinery in Dumai and would build others in lower regions in Sumatera or Kalimantan and one in Java. The total would be four refineries within 750 thousand ton per hour – capacity for each. Or in total it would be 3 million ton per year – capacity in 2026.

This would be the same with palm cooking oil consumption needs in Indonesia, as Dwi calculated, bulk palm cooking oil needs could be reaching about 1,8 million tons per year; premium palm cooking oil in package could be 1,8 million tons per year. “The future palm cooking oil needs for household could be from us for having 3 million tons per year – production. But we would not sell it to the industries,” he said

In fact, it is not only palm cooking oil. Dwi also planned to develop biodiesel industries through the four refineries. “We planned that the refinery in Sei Mangkei would be producing biodiesel to other countries. Further more we got Roundtable on Sustainable Palm Oil and International Sustainability and Carbon Certificate,” Dwi said.

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