Plantation Division Print ThisPrint this page

The Plantation Division manages and cultivates various agricultural crops on IndoAgri's estates. It is also responsible for the production and sale of CPO, PK and other related by-products.

In Indonesia, the Group's Plantation Division owns and operates 24 palm oil mills, four crumb rubber processing facilities, three sheet rubber processing facilities, two sugar mills/refineries, one cocoa mill and one tea mill. The Group also has sugar operations in Brazil through a 50-50 joint venture in CMAA, and in the Philippines through an indirect interest in RHI. The Plantation Division is IndoAgri's dominant business unit, contributing over 90% to the Group's EBITDA.

Planted Area - Indonesia

Nucleus 31 Dec 2016 31 Dec 2015 31 Dec 2014
Total 247,430 246,359 246,055
Mature 203,501 187,400 185,181
Immature 43,929 58,959 60,874
Nucleus 31 Dec 2016 31 Dec 2015 31 Dec 2014
Rubber 20,115 21,338 21,697
Sugar 13,249 13,358 13,062
Others 19,742 19,578 19,236
Plasma 31 Dec 2016 31 Dec 2015 31 Dec 2014
  90,463 90,316 90,149

Planted Area - Brazil

Nucleus 31 Dec 2016 31 Dec 2015 31 Dec 2014
Total 53,826 52,843 47,554
Own 26,477 25,567 24,292
Supplier 27,349 27,276 23,262

Oil Palm

As at 31 December 2016, the Group's oil palm estates covered 247,430 hectares, of which immature estates occupied 43,929 hectares or 18% of the total planted palm area. The average age of our oil palms is about 14 years. The Division owned and operated 24 palm oil mills with a combined FFB processing capacity of 6.4 million tonnes per annum.

In FY2016, the Group's oil palm plantations produced approximately 833 thousand tonnes of CPO, most of which were supplied to the refineries of the Group mainly for the manufacture of edible oils & fats. Palm kernel which are not required for the Group's refining needs are generally sold to external parties.

The Plantation Division manages SumBio and PT SAIN, IndoAgri's advanced agricultural R&D centres at Bah Lias, North Sumatra and Pekanbaru, Riau respectively. These centres specialise in high-tech seed breeding programmes and cultivation techniques, and produced a combined output of 14.5 million premium palm seeds in 2016.

IndoAgri through its subsidiaries PT SIMP and Lonsum, is a member of the Roundtable on Sustainable Palm Oil (RSPO). IndoAgri believes its business operations are conducted in accordance with the RSPO's Principles and Criteria for Sustainable Palm Oil.

We are on track to achieving RSPO and ISPO standards by the end of 2019 for all the Group's mills, estates and smallholder plots. As at December 2016, we have attained RSPO and ISPO certification for 388,000 tonnes and 255,000 tonnes respectively, representing 47% and 31% of our total CPO production in 2016. Additionally, 80% of supply to our refineries is from CPO suppliers who have been pre-audited against the IndoAgri Palm Oil Sourcing Policy.


The Division's rubber estates are located in North and South Sumatra, East Kalimantan and Sulawesi. Our rubber trees average about 15 years, and our nucleus rubber estates occupied 20,115 hectares as at end 2016, including 17% that are immature. We also own and operate four crumb rubber and three sheet rubber processing facilities.

In FY2016, rubber production declined 12% to 15,000 tonnes due to replanting activities. We exported 38% of our rubber products comprising largely sheet rubber, crumb rubber and cup lump, while the balance was sold domestically.


In Indonesia, the Plantation Division's sugar cane estates are sited in South Sumatra and Central Java. We produces 50kg pack sugar and sells to domestic industrial users, under the brand of Indo Sugar. Over the years, our sugar operation has been well supported by positive drivers such as shortfalls in domestic supply, population growth and a flourishing food and beverage industry.

As a local producer, the Division is protected by legislations shielding domestic sugar prices from global fluctuations. An import quota is triggered should domestic prices fall below the government-mandated floor price of Rp9,100 per kilogramme. At present, domestic sugar prices have kept above the international market.

IndoAgri's sugar plantation in Brazil is held and managed through a 50% stake in CMAA. CMAA cultivates and processes sugar cane for the production and marketing of ethanol and sugar, and the co-generation of electric power from sugar cane bagasse. These activities are supported by one modern sugar mill in Vale do Tijuco, Brazil, with a total crushing capacity of 3.8 million tonnes per year.

In the Philippines, IndoAgri has a 30% investment in FPNRL, which in turn, has a 59.7% interest in RHI, the nation's largest integrated sugar business. RHI has three sugar mills, one in Batangas and two in Negros Occidental with a combined processing capacity of 38,500 TCD or 6.2 million tonnes per year. This makes RHI the biggest sugar miller in the Philippines, supplying nearly 18% of the country's total sugar production. It is also the third largest Filipino sugar refiner, with a capacity of 18,000 Lkg/day at its Batangas refinery (one Lkg is equivalent to a 50kg bag of sugar).


Kahuripan Tea is a downstream tea product from Kertasarie, Pengalengan, West Java. Kertasarie tea estate is owned by PT PP London Sumatra Indonesia Tbk (Lonsum), a subsidiary of PT SIMP as part of IndoAgri, Indofood Group. Located 1600 to 1825 meters above sea level, the 600-hectare Kertasarie estate is one of the most elevated tea plantations in Indonesia, hence a very good environment for tea cultivation.

Kertasarie estate, operating since 1908, has been processing its harvests in its own factory with a capacity of 35 tonnes per day. Most of the tea leaves produced have been sold to tea packaging companies both domestically and abroad.

Lonsum now starts its own downstream product by manufacturing tea bags with the brand "Kahuripan," a name synonymous to "Life."

Current tea bag products are Regular Black Tea in gussets (aluminum foil) and Premium Black Tea in boxes (each contains 25 tea bags). In the near future, Lonsum will produce Premium Black Tea plus White Tea in boxes (each contains 10 tea bags).

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