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PTPN3 Records IDR 615 Billion Loss

19 Jul 2016

PTPN3 Records IDR 615 Billion Loss. The loss was revealed by Elia Massa Manik during a Press Conference at the Agro Plaza, South Jakarta, Monday (18/7).Regarding the cause of such losses, Elia Massa Manik mentioned that PTPN's main target nowadays is to increase the productivity of land owned by subsidiaries under the plantation holding. This is because the productivity of land managed by PTPN 1-4 (a merger of PTPN1 through PTPN4) has only reached 18.5 tons per hectare, lower than the average 24 tons per hectare achieved by private plantations.`The thing we must pursue first is productivity. So if the average productivity for national private companies is 24 tons per hectare, we are still at 18.5 tons. That's what we must pursue first,` Elia explained. To increase the productivity of land managed by PTPN, we will conduct research. The plantation company's expenses are also rather high because they need to cover inefficient production costs.`Then, the second is cost. The cost must be competitive. Currently, on average, compared to a private company, our cost is 20% higher. These are the two main problems that must be resolved,` Elia said.Spending to cover production costs is also a result of the low productivity of PTPN's land. The two things are the main problems in developing the plantation industry in Indonesia.`The cost is high because the productivity is low. The cost of managing one hectare is the same everywhere. If they can get 100 and we only get 80, the cost will be higher, right,` Elia said.`I would prefer if we settled the productivity issue first,` Elisa insisted.Building a Cooking Oil FactoryOn the same occasion, Elia Massa revealed that the corporate move that would be carried out by his company is building a cooking oil factory in the Special Economic Zone (KEK) of Sei Mangke, North Sumatera.The cooking oil factory that will be operated by the parent holding of the state plantation company will have a capacity of 600,000 tons per year, with an investment value reaching up to Rp 558 billion. The factory will be built on land that spans 2,000 hectares. The construction will begin this year.`We will build a cooking oil factory with a capacity of 600,000 tons, with an investment of Rp 558 billion in Sei Mangke. The land issue has been settled. We have 2,000 hectares of industrial area there,` Elia Massa Manik said.However, the current obstacle is the access road from and to the Kuala Tanjung Port. The access road is considered to be minimal. Furthermore, the gas network in the area has not yet been installed.`Indeed, there is an infrastructure problem that must be resolved, such as the accessibility to the Kuala Tanjung Port, along with a gas problem, and so on,` Elia said.PTPN3's business expansion was carried out because the fulfillment of domestic cooking oil needs is still not enough. His company also welcomes the private sector to participate in the construction of the cooking oil factory.`Cooking oil is considered because the technology is still affordable. If we look at the 600,000 tons, the demand has reached 1.4 million tons per year. We are still open to partnerships, Unilever maybe?` Elia said.59% from Palm OilPTPN3, as the parent company of 13 government-owned plantation companies, recorded earnings of Rp 37 trillion in 2015. Of the total earnings, around 59% came from the sale of palm oil, or around Rp 22 trillion. The company expects earnings to increase this year.`Revenue was Rp 37 trillion, of which palm oil contributed Rp 22 trillion. This year, we hope it will grow as much as possible,` Elia said.With the existence of the palm oil moratorium, he does not see it as an obstacle. According to him, with the total palm oil land spanning 440,000 hectares, there is still a lot of empty land. The current focus is on increasing the productivity of palm oil land in Indonesia.`Everything has been evaluated; our palm oil land spans 440,000 hectares. There is still a lot that hasn't been planted,` Elia said.He also believes that increasing palm oil optimization by 10% will increase land productivity and also add to the company's earnings from palm oil.`If we can just increase productivity by 10%. We are focusing on this land first. Why take more land when this land has not been optimized?` Elia concluded. (dtf)
http://www.medanbisnisdaily.com/news/read/2016/07/19/246058/ptpn3-mengalami-kerugian-rp-615-miliar/#.V42wCxJna1s

The loss was revealed by Elia Massa Manik during a Press Conference at the Agro Plaza, South Jakarta, Monday (18/7).Regarding the cause of such losses, Elia Massa Manik mentioned that PTPN's main target nowadays is to increase the productivity of land owned by subsidiaries under the plantation holding. This is because the productivity of land managed by PTPN 1-4 (a merger of PTPN1 through PTPN4) has only reached 18.5 tons per hectare, lower than the average 24 tons per hectare achieved by private plantations.`The thing we must pursue first is productivity. So if the average productivity for national private companies is 24 tons per hectare, we are still at 18.5 tons. That's what we must pursue first,` Elia explained. To increase the productivity of land managed by PTPN, we will conduct research. The plantation company's expenses are also rather high because they need to cover inefficient production costs.`Then, the second is cost. The cost must be competitive. Currently, on average, compared to a private company, our cost is 20% higher. These are the two main problems that must be resolved,` Elia said.Spending to cover production costs is also a result of the low productivity of PTPN's land. The two things are the main problems in developing the plantation industry in Indonesia.`The cost is high because the productivity is low. The cost of managing one hectare is the same everywhere. If they can get 100 and we only get 80, the cost will be higher, right,` Elia said.`I would prefer if we settled the productivity issue first,` Elisa insisted.Building a Cooking Oil FactoryOn the same occasion, Elia Massa revealed that the corporate move that would be carried out by his company is building a cooking oil factory in the Special Economic Zone (KEK) of Sei Mangke, North Sumatera.The cooking oil factory that will be operated by the parent holding of the state plantation company will have a capacity of 600,000 tons per year, with an investment value reaching up to Rp 558 billion. The factory will be built on land that spans 2,000 hectares. The construction will begin this year.`We will build a cooking oil factory with a capacity of 600,000 tons, with an investment of Rp 558 billion in Sei Mangke. The land issue has been settled. We have 2,000 hectares of industrial area there,` Elia Massa Manik said.However, the current obstacle is the access road from and to the Kuala Tanjung Port. The access road is considered to be minimal. Furthermore, the gas network in the area has not yet been installed.`Indeed, there is an infrastructure problem that must be resolved, such as the accessibility to the Kuala Tanjung Port, along with a gas problem, and so on,` Elia said.PTPN3's business expansion was carried out because the fulfillment of domestic cooking oil needs is still not enough. His company also welcomes the private sector to participate in the construction of the cooking oil factory.`Cooking oil is considered because the technology is still affordable. If we look at the 600,000 tons, the demand has reached 1.4 million tons per year. We are still open to partnerships, Unilever maybe?` Elia said.59% from Palm OilPTPN3, as the parent company of 13 government-owned plantation companies, recorded earnings of Rp 37 trillion in 2015. Of the total earnings, around 59% came from the sale of palm oil, or around Rp 22 trillion. The company expects earnings to increase this year.`Revenue was Rp 37 trillion, of which palm oil contributed Rp 22 trillion. This year, we hope it will grow as much as possible,` Elia said.With the existence of the palm oil moratorium, he does not see it as an obstacle. According to him, with the total palm oil land spanning 440,000 hectares, there is still a lot of empty land. The current focus is on increasing the productivity of palm oil land in Indonesia.`Everything has been evaluated; our palm oil land spans 440,000 hectares. There is still a lot that hasn't been planted,` Elia said.He also believes that increasing palm oil optimization by 10% will increase land productivity and also add to the company's earnings from palm oil.`If we can just increase productivity by 10%. We are focusing on this land first. Why take more land when this land has not been optimized?` Elia concluded. (dtf)
http://www.medanbisnisdaily.com/news/read/2016/07/19/246058/ptpn3-mengalami-kerugian-rp-615-miliar/#.V42wCxJna1s

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