IndoAgri places a high emphasis on its research and development activities. Its research and development activities are focused on applied R&D that supports the improvement of its plantation, cultivation, refining and production processes.

Plantation division

For the plantation division, IndoAgri has a dedicated team of researchers to carry out research and development activities that focuses on, inter alia:-

• Applied R&D that supports maximum productivity and efficiency using established and latest research findings and innovations in the fields of agronomy, soils, plant nutrition and pests and diseases

• Optimising biological methods of pest and palm tree disease control. The research team has developed an owl management system for rodent control. As a result, since 2001 all planted areas in IndoAgri and its subsidiaries’ plantations in Riau Province have been free of rat poison use. The research team has produced viruses against worm pests, and fungus for use against Ganoderma disease and white-rooted fungi disease in rubber trees.

• Plantation mechanisation. The research team performs regular techno-economic analysis of the methods and mechanisms of work undertaken at its oil palm plantations with the aim of increasing efficiency and productivity.

• Research on fertilizer usage and usage of by-products derived from the FFB milling process as organic fertilizers. The research team performs trials on responses to fertilizer use and provides recommendations on fertilizing activity (i.e., whether to use inorganic fertilizers (chemical) and/or organic fertilizer) for its oil palm and rubber plantations taking into consideration, inter alia, soil and leaf analysis, site visits, its historical production database and rainfall patterns. The research team also monitors the usage of its by-products as fertilizers and monitors the dosage of fertilizing per tree block.

The plantation division has utilised satellite technology in the preparation of a geographic information system map (i.e., physical map) of its plantations for the purpose of computing the number of palm trees planted, and has also undertaken a global positioning system survey of its plantations for tree block mapping purposes. This enables management to utilise improvements in mapping and satellite technology to continually monitor and improve operational efficiency.

The plantation division also maintains its own analytic chemistry laboratory which conducts chemical analysis on leaf, soil, land, water and effluent samples as well as monitors the quality of CPO produced. This enables IndoAgri to ensure a consistent high quality of CPO produced.

Cooking Oil and Fats division

For the cooking oil and fats division, IndoAgri employs a team of experienced researchers with the capability to improve and develop new ranges of products needed in different applications by industry and consumers. IndoAgri has a specialty fats simulation laboratory that is capable of producing various kinds of specialty fats for research and development purposes. IndoAgri is currently conducting research and development in the following areas:-

• Continuously improving the quality and consistency of its branded products;
• Developing specialty fat products for use in cakes, bread, confectioneries and other bakery products;

• Developing new branded products to meet customer demands and specifications; and

• Developing new packaging materials and designs to support product appearance and cost efficiency programs.

Through its research and development efforts, IndoAgri aims to further enhance its competitiveness by improving its cultivation and processing technologies. IndoAgri believes the above efforts will ensure it continues to achieve high production yields, cost efficiencies and value added creation in branded products.