PalmCo Becomes World’s Largest Palm Oil Plantation through Joint Operation

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PalmCo Holds World's Largest Oil Palm Plantation, Plans Expansion Through Collaboration. Photo by: Palmoilmagazine.com

PALMOILMAGAZINE, JAKARTA – PT Perkebunan Nusantara IV, also known as PalmCo, has officially assumed control of the largest palm oil cultivation area globally, spanning approximately 586,000 hectares. With ambitious plans to expand its plantation area to 708,000 hectares over the next decade, PalmCo is poised for significant growth.

This expansion will be facilitated through a collaborative operational partnership (Kerja Sama Operasi – KSO) between PalmCo and PT Perkebunan Nusantara I, also known as SupportingCo, a subsidiary of Perkebunan Nusantara PTPN III (Persero). The KSO agreement was signed in early April 2024, marking the beginning of this cooperation.

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Denaldy Mulino Mauna, Vice Director of PTPN III (Persero), emphasized that the collaboration will bring mutual benefits to both parties. For PalmCo, it presents an opportunity to enhance productivity by minimizing disparities and production costs associated with managing the world’s largest palm oil plantations. Meanwhile, for SupportingCo, the income generated from the collaboration will serve as a crucial revenue stream, supporting the processing of the commodities handled by the company.

Also Read: PTPN IV PalmCo Region 3 Committed to Continue Superior Seedling Procurement Program

“We hope that by having KSO, the subholdings would maximally contribute to every stakeholder,” he said, Monday (22/4/2024).

KSO would last for the next 25 years. By having effective KSO, the assets that SupportingCo managed, would be the responsibility for PalmCo. The first priority in the strategic implementation would be in KSO management and disposition.

Director of PalmCo, Jatmiko Santosa said that KSO management would focus on the regional management. Every former region where PTPN I (Aceh) and PTPN II (North Sumatera) operated, would be managed by regional management former PTPN I Langsa. 

While the former PTPN VII (Lampung) and former PTPN VIII (West Java) would be the responsibility of regional management of former PTPN VII particularly palm oil. Regional SupportingCo in the KSO, such as, former PTPN XIV would be managed by general manager equally.

Though management structures would be changed, the workers in SupportingCo would maintain their status and work connection but every instruction would be headed to PalmCo. (T2)

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