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RNI Group teams up with PTPN III to build new palm oil mill

JAKARTA (Rambu Energy) – PT Rajawali Nusantara Indonesia, state owned sugar company, is expanding its wing to producing non-sugar commodities. The company will further invest Rp100 billion to build the third palm oil mill in Musi Banyuasin, South Sumatra that will increase its mill capacity from 90,000 tons to 120 tons per hour.

The palm oil mill is developed through its subsidiary PT Perkebunan Mitra Ogan, a venture with state ownd plantation firm PT Perkebunan Nusantara IIII (PTPN III). The investment is funded by state owned PT Bank Rakyat Indonesia Tbk (BRI).

Currently, Mitra Ogan operates two palm oil mills, namely PKS-I and PKS-II located in Peninjauan subdistrict, Ogan Komering Ulu Regency. The first mill has a capacity to produce 60 tons of fresh fruit bunch (FFB) per hour and the second mill has a capacity produce 30 tons per hour.

The palm oil mills process FFBs from 9,741 hectares of main oil palm plantation and 16,150 nucleus-system oil palm plantation.

Ismed Hasan Putro, president director of RNI said in a statement that the new palm oil mill is scheduled to start commercial operation in November 2015. (*)

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