Jakarta, IO – PT Perkebunan Nusantara (PTPN) IV (PalmCo) has officially become the manager of the largest oil palm plantation in the world, covering 586,000 hectares of land. Within a decade, it is expected to expand to 708,000 hectares.
This was after PTPN Group subholdings PalmCo and SupportingCo signed a joint operation partnership (KSO) which took effect in early April.
“We hope that with this KSO, the two subholdings will be able to optimally contribute to maximize stakeholder value,” said PTPN III vice president Denaldy Mulino Mauna, per CNBC Indonesia, Tue (23/4).
According to Denaldy, this collaboration will deliver plethora of benefits. For Palmco, the KSO can potentially increase productivity by reducing price disparity and production cost, while for SupportingCo it can help achieve turnaround for the commodities it manages.
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PalmCo and SupportingCo relatively new entities, having been just established in December 2023 through PTPN Group corporate actions as part of the National Strategic Programs (PSN). It is hoped that the KSO can enable them to make a positive contribution to the national food and energy security. (bp)