Welcome Guest   |  Login   |   Signup
JG Logo
Fri, May 25, 2012
Archive Search

Palm Oil Producer BW Plantation to Buy Up Land With $88m Loan
Indah Handayani | February 12, 2012

Share This Page
0
0
0
0
Share with google+ :


Post a comment
Please login to post comment

Comments

Be the first to write your opinion!

Eyeing growth in the crude palm oil sector, BW Plantation, a listed company, has secured a Rp 800 billion ($88.8 million) loan facility to expand its subsidiaries and buy more plantation land.

The loan, from state lender Bank Negara Indonesia, was signed last Wednesday and will mature in February 2020 with 10 percent annual interest, said BW Plantation’s corporate secretary, Kelik Irwantono.

“The company will continue its expansion in line with our view that the crude palm oil sector will remain bullish in the future,” he said.

Crude palm oil is BW Plantation’s key commodity. In the next two to three years, Kelik said, the company aims to own 150,000 hectares of plantation land, up from 94,000 hectares currently.

“For that, we could buy at least 25,000 hectares of land [this year],” he said.

BW Plantation is targeting a 25 percent increase in its crude palm oil production this year after expanding its production capacity in Senyiur village in East Kalimantan. The company’s production rose 21.4 percent last year, to 110,771 tons.

BW Plantation set aside Rp 700 billion in capital expenditure this year, most of which will fund a factory to process crude palm oil, plantation maintenance and land acquisition, Kelik said previously.

The company’s shares fell 4.11 percent to close at Rp 1,400 on Friday on the Indonesia Stock Exchange.

Other plantation companies are also looking to expand. Jaya Agra Wattie, for example, is seeking Rp 1 trillion this year as part of a plan to expand its plantations for crude palm oil and rubber.

Investor Daily




  • 9:29pm | Nearly Every High School Stude...
    I can already imagine how many future Nobel prize laureate will be coming from the ranks of these students. And of course how many Nobel Prize winn
  • 9:28pm | Lady Gaga Refuses to Tone Down...
    Ladygaga is my new heroine, she has more balls than our President and so-called majority peace-loving moderate but silent Muslims.. Now bataks shou
  • 9:24pm | Update: Australia, Indonesia D...
    blightyboy, The cases emerged my friend was pointing out were in their late thirties up to late forties. Most of the cases go indetected according
  • 9:06pm | Most Still Unaware of Indonesi...
    tell that to the journalist that just got stabbed by the government minister. The US needs to hurry up and sell these apes some artillery so they c
  • 9:02pm | Indonesia ‘Most Tolerant Count...
    Jubal.Harshaw: post of the day sir.
  • 8:47pm | Most Still Unaware of Indonesi...
    Good one, i believe it's the first country in the region(S.E.Asia) doing so, beside Australia and kiwi.
  • 8:36pm | Some Experts Say Indonesia's B...
    @JohnnyFool I strongly believe everyone is entitled to speak freely on any topic . Those thugs have so many different fundamental b
  • 8:29pm | Indonesia ‘Most Tolerant Count...
    22 - read the artice - most the people they reffering to are Indonesians NOT overseas. Its ok anyway because Indons have the highes