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Triputra Group sets aside US$300 million for expansion

JAKARTA ( – Triputra Group, found by Theodore P. Rachmat, former president director of diversified group PT Astra International Tbk will continue to expand this year despite unfavorable crude oil price. The company decided to set aside US$300 million for the move.

Director of Triputra Group Arief P. Rachmat, said the funds will be allocated to develop its agriculture and logistic businesses. Currently, the company has a total palm oil plantation area of 388,000 hectares. The company aims to increase the size of its plantation to 600,000 hectares by 2020.

“The palm oil industry remains promising because the demand for biodiesel will increase,” Arief was quoted by Investor Daily as saying. In addition, the government has also increased the mandatory utilization of biodiesel to 20 percent in every liter of fuel.

Arief Rachmat said the company will use the funds to build new palm oil mills as well as to maintain the palm oil plantations. The company manages its palm oil plantation through its subsidiary PT Triputra Agro Persada. Around 168,000 hectares of its plantation area has been planted. The company estimates its CPO production this year to reach 500,000 tons.

The company’s plantation estates are located in Central Kalimantan, East Kalimantan, West Kalimantan, South Kalimantan as well as in Jambi, Sumatera. The company also has a subsidiary that manages rubber plantations, called PT Kirana Megatara, which is the largest crumb rubber producer in Indonesia with production capacity of 600,000 tons per annum.

Kirana has 15 rubber plants in Sumatera and Kalimantan. It aims to raise the company’s plants capacity to 1 million tons per year in next five years. Kirana supplies raw materials to world tire makers such as Bridgestone, Sumitomo Rubber Industries, Yokohama Rubber and Toyo Tire and Rubber.

Arief said Triputra will also expand its logistic unit PT Puninar Logistics. The company which owns 800 trucks and indoor warehouse of 150,000 square meters as well as 250,000 square meters outdoor warehouse, has set up cooperation with Kerry Logistics to help the company in penetrating international market.

As for planned IPO of Triputra Agro, Arief said the IPO could be realized next year (2016). (*)

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