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Jakarta. Bakrie Sumatera Plantation, a unit of Bakrie & Brothers, expects revenue to increase 30 percent next year, aided by increasing sales in companies it bought this year, a company executive said.

President director Ambono Januarianto said the company’s target is Rp 3 trillion ($333 million) in revenue this year.

The company is positive about next year’s growth, Ambono said, adding, “With an oleochemical business unit added, the company will increase another one trillion in revenue next year, or about 30 percent of this year’s target.”

Bakrie Sumatera has completed the acquisition of four out of six targeted oleochemical companies.

It finalized the purchase of Domas Agrointi Perkasa, Domas Sawinti Perdana, Flora Sawita Chemindo and Sarana Industama Perkasa this month, and Ambono said the company hopes to wrap up deals for two unnamed others by the end of the year.

The oleochemical facilities are located in Tanjung Morawa and Kuala Tanjung, North Sumatera.

The Tanjung Morawa facilities have a total production capacity of between 40,000 tons to 50,000 per annum, he said.

Oleochemicals are derivative products from palm oil, such as fatty acid, fatty alcohol and glycerine and used in the production of soap, shampoo, cleansing products and cosmetics.

Bakrie Sumatera began its acquisition of oleochemical facilities after generating Rp 4.9 trillion in a rights issue in February.

The company invested Rp 2.2 trillion in the oleochemical units.

Bakrie Sumatera started production of fatty acid at Tanjung Morawa in December, exporting 500 tons of the substance and 200 tons of glycerine.

It expects to export around 30,000 tons of oleochemicals next year.

Ambono said he was very optimistic about the oleochemical market in Indonesia, India, China and Brazil, especially for fatty alcohol, which is mainly used in products such as shampoo and liquid soap.

Part of his optimism stemmed from the growing economy and rising per capita income in those countries.

“Many will convert to liquid soap from soap bars because it is more hygienic and cheaper — a great marketing opportunity.”

In developed countries such as the United States, the consumption per capita of fatty alcohol is 1 kilo per year.

In developing countries such as China and India, it is 0.1 kilos, leaving ample room for consumption to increase.