PALMOILMAGAZINE, KUALA LUMPUR — Malaysian plantation company AEP Plantations has officially signed a sale and purchase agreement to acquire PT Pinago Utama Tbk, a plantation company listed on the Indonesia Stock Exchange.
The acquisition is viewed as a major strategic expansion that will significantly strengthen AEP Plantations’ operational scale while supporting the group’s financial performance in the current fiscal year.
According to the company’s official corporate announcement, Pinago operates a well-established plantation business in South Sumatra, managing approximately 15,400 hectares of planted oil palm estates and around 3,500 hectares of rubber plantations. The company is also supported by integrated processing facilities, including a palm oil mill with a processing capacity of 120 tons per hour.
Also Read: PTPN IV PalmCo and ITS Launch Five-Year Partnership to Develop Palm-Based Green Fuel
“Pinago has mature plantation assets with production capabilities that can immediately contribute to the group’s operations,” said Marcus Chan, Executive Director of Corporate Affairs at AEP Plantations, in a statement quoted by Palmoilmagazine.com on Sunday (May 10, 2026).
The acquisition is expected to increase AEP Plantations’ total oil palm planted area by approximately 23%, significantly expanding the company’s production base while increasing exposure to productive and income-generating plantation assets.
Management stated that the move represents more than a land expansion strategy, describing it instead as part of a broader effort to optimize capital allocation into large-scale plantation assets with established infrastructure and stable earnings contributions.
Also Read: CPOPC and Papua New Guinea Advance Partnership for Sustainable Palm Oil Development
“The acquisition of Pinago meaningfully increases our operational scale and strengthens the group’s ability to deliver sustainable returns from a larger production asset base,” Marcus explained.
Despite the transaction, AEP Plantations emphasized that the group will continue to maintain a strong balance sheet while upholding its progressive dividend policy. The company signaled that the acquisition strategy is designed not only to expand assets, but also to maintain a balance between long-term business growth and shareholder value creation.
For the regional palm oil industry, AEP’s entry into Pinago reflects growing investor interest in productive Indonesian plantation assets, particularly those already equipped with downstream infrastructure and operational processing capacity.
ALso Read: Indonesia Sets May 2026 Biodiesel Market Index Price at IDR 14,917 per Liter
The transaction also reinforces South Sumatra as one of Southeast Asia’s strategic palm oil investment destinations, supported by its established plantation ecosystem and expanding industrial infrastructure. (P2)
