PTPN III Explores Strategic Partnership with Basic International Investment in China

Palm Oil Magazine
PTPN III Explores Strategic Partnership with Basic International Investment in China. Photo by: PTPN

PALMOILMAGAZINE, JAKARTA Mohammad Abdul Ghani, the President Director of Holding Perkebunan Nusantara PTPN III (Persero), embarked on a working visit to China on Thursday, January 9, 2025, to explore strategic collaboration opportunities with Basic International Investment Pte Ltd. The productive meeting centered on business investment opportunities in the Sei Mangkei Special Economic Zone (SEZ) in North Sumatra.

During the meeting, Abdul Ghani was welcomed by Basic International Investment’s CEO, Liu. The discussion took place in a warm and cooperative atmosphere, emphasizing the shared vision of both parties to integrate business profitability with broader social benefits.

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Liu expressed his appreciation for PTPN’s support of his company’s business activities in Indonesia. He detailed plans for significant investments in Sei Mangkei SEZ, including the construction of a natural rubber glove manufacturing plant and the establishment of a research and development (R&D) center for rubber.

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“We are committed to creating up to 7,000 local jobs and enhancing the quality of rubber-based products through collaboration with research institutions like Riset Perkebunan Nusantara (RPN),” said Liu in a written statement quoted by Palmoilmagazine.com on Tuesday, January 14, 2025.

Liu highlighted Indonesia’s strategic position, particularly Sei Mangkei SEZ, as an investment hub amidst global economic dynamics. Basic International also plans to develop a biomass-based power plant to support the transformation of this region into a Green Industry Zone.

Enhancing Rubber’s Economic Value

Abdul Ghani welcomed these investment plans, emphasizing that such initiatives would provide new opportunities to increase the economic value of rubber, despite the challenges posed by commodity price pressures.

“The planned conversion of rubber plantations to oil palm or sugarcane will be re-evaluated to ensure adequate raw material supplies to support this investment,” said Abdul Ghani.

Furthermore, this partnership is expected to yield significant social benefits. “With increased job creation, this step aligns with the government’s target under President Prabowo Subianto to achieve 8% economic growth,” he added.

Support for National Programs

During the discussions, Basic International also expressed interest in investing in the dairy farming sector to support the government’s Free Nutritious Meal Program. Its subsidiary, PT Basic International Sumatera (BASIC), invested IDR 659 billion in Sei Mangkei SEZ in 2024.

This initiative is part of a long-term investment plan totaling IDR 15 trillion. In its first phase, an investment of IDR 4.8 trillion will be gradually implemented over five years starting in July 2024.

This collaboration is anticipated to serve as a significant milestone in advancing sustainable business development in Indonesia, making tangible contributions to the national economy while improving the welfare of local communities. (P2)

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