Official! PTPN Holding Mergers 13 Companies to Become PalmCo and SupportingCo

Jakarta –

Holding Perkebunan Nusantara PTPN III (Persero) today, Friday, (01/12/2023), announced the merger of 13 companies under Holding Perkebunan Nusantara into two Sub Holdings. The two are PalmCo and SupportingCo.

Subholding PalmCo was formed through the merger of PT Perkebunan Nusantara (PTPN) V, VI and XIII into PTPN IV as the surviving entity and the impure separation of PTPN III (Persero) into PTPN IV. Meanwhile, Subholding SupportingCo was formed through the merger of PTPN II, VII, VIII, IX, X, XI, XII, and XIV into PTPN I.

Deputy Minister of BUMN, Kartika Wirjoatmodjo, in his briefing said that the PTPN Group merger was one of the schemes implemented by the Ministry of BUMN. One of the goals is to increase efficiency and improve various financial and operational indicators of the company.

“Of course, after this signing there will be integration of systems, HR, operations, finance, and so on, which we are trying to complete within six months. And after that we have to return to focus on our respective tasks,” said the man who is familiarly called Tiko this in a written statement, Friday (1/12/2023).

Tiko added that the challenges that often arise in company mergers are related to HR integration. However, this is not an obstacle for the PTPN Group because it has support from the workers’ union.

“I hope that this cohesiveness will continue to be maintained so that there will be no turmoil that disrupts the company’s performance, where PalmCo will focus on increasing the downstreaming of palm oil products. Furthermore, the energy sector such as biogas, biodiesel sustainable efficient fuel, and other products will also be of concern company,” he said.

Main Director of Holding Perkebunan Nusantara PTPN III (Persero) Muhammad Abdul Ghani said that the corporate restructuring action to form Subholding PalmCo and SupportingCo, following the formation of SugarCo in 2021, was an effort to continue to grow and contribute optimally.

“This integration strengthens the company’s position because it has competitive and comparative advantages, where the company is supported by superior use of land resources, human resources, technological innovation and digitalization,” said Ghani.

Subholding’s strategy to achieve this big goal includes maximizing the value of landbank assets to gain added value, increasing EBITDA margins in the next 5 years, increasing ESG and food security, increasing equity, and increasing leadership.

PalmCo is expected to become the largest palm oil company in the world in terms of land area, reaching more than 600 thousand hectares by 2026. PalmCo is also expected to become a major player in the world palm oil industry.

Thus, PTPN is believed to be able to contribute to increasing national CPO production and domestic cooking oil. PTPN estimates that its cooking oil production will increase from 460,000 tons/year in 2021 to 1.8 million tons/year (4 times) in 2026.

Meanwhile, SupportingCo will become a superior plantation asset management company, which includes activities for utilizing plantation assets through asset optimization and divestment, management of plantation crops, diversification of other businesses, as well as green business that is able to provide added value to the company.

(ily/hns)